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Oil prices rise as Israel weighs response to Iran attack
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Oil prices rise as Israel weighs response to Iran attack
Apr 15, 2024 5:34 PM

April 16 (Reuters) - Oil prices rose on Tuesday amid

heightened tensions in the Middle East after Israel's military

chief said his country would respond to Iran's weekend missile

and drone attack amid calls for restraint by allies.

Brent futures for June delivery rose 46 cents, or

0.5%, to $90.56 a barrel by 0005 GMT. U.S. crude futures

for May delivery rose 43 cents, or 0.5%, to $85.84 a barrel.

Oil prices had ended Monday's session lower after Iran's

weekend attack on Israel proved to be less damaging than

anticipated, initially easing concerns of a quickly intensifying

conflict that could displace crude barrels.

The attack, which Iran called retaliation for an air strike

on its Damascus consulate, caused only modest damage, with

missiles shot down by Israel's Iron Dome defence system.

But Israel's Prime Minister Benjamin Netanyahu on Monday

summoned his war cabinet for the second time in less than 24

hours to weigh how to react to Iran's first-ever direct attack

on Israel, a government source said. That raised market concerns

that retaliatory measures could impact oil supply.

Iran produces more than 3 million barrels per day of crude

oil as a major producer within the Organization of the Petroleum

Exporting Countries (OPEC).

The benchmarks had risen on Friday in anticipation of Iran's

retaliatory assault, with prices soaring to their highest since

October.

In China, the world's biggest oil importer, official

gross domestic product figures due on Tuesday are expected to

show growth slowed to 4.6% year-on-year from 5.2% in the

previous three months. That would maintain pressure on

policymakers to unveil more economic stimulus measures that

could boost oil prices.

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