06:02 AM EDT, 09/25/2024 (MT Newswires) -- The escalating conflict in the Middle East has boosted crude oil prices recently, but there appears to be little chance for a significant widening of the oil price risk premium or a further price increase, Commerzbank said in a Tuesday note.

Brent crude just recorded its strongest weekly increase since April and, for West Texas Intermediate crude, the increase was its biggest since February, the bank noted. However, these advances only partially reversed heavy losses sustained since the start of the month.

The Middle East conflict has been going on for almost a year without any significant supply disruptions on the oil market, Commerzbank said. Oil producers have mostly managed to avoid the effects of the conflict.

It is unlikely that the conflict between Israel and Hezbollah will lead to supply disruptions, unless a further escalation results in an Israeli attack on Iran's oil infrastructure or Iran impedes passage through the Strait of Hormuz, the bank said. Commerzbank considers the risk of these events coming to pass to be very low.