Oil prices on the New York Mercantile Exchange are at a seven-month low as investors assess the situation in the Middle East and expect Iran to retaliate against Israel after the killings of Hezbollah and Hamas officials last week, traders said.
A barrel of West Texas Intermediate crude for delivery on IX is trading at USD 72.88 on the NYMEX in New York, down 0.87 percent.
Brent on ICE on X is trading at $76.22 per barrel, down 0.77%.
READ ALSO: STRONG DECALS ON PARQUETS >>>
Tensions in the Middle East
Investors are preparing for a possible attack on Israel from the side Iran and its allies in retaliation for the assassination of representatives of Hezbollah and Hamas.
More than 20 people have been detained in Iran as part of an investigation into the killing of Palestinian Hamas leader Ismail Haniyeh, anonymous sources say.
Among those detained are senior intelligence and military officers responsible for Tehran's defense. Employees of the building where Haniyeh was staying have also been detained.
Investigators confiscated all of the detainees' electronic devices. They are also analyzing surveillance footage from Iranian airports. According to investigators, the suspects in the killing of the Hamas leader are in Iranian territory.
Haniyeh was killed on July 30 by a bomb planted in the room where he was staying after arriving in Tehran for the Iranian president's inauguration. The bomb was allegedly planted two months earlier.
Iran's Revolutionary Guard Corps said Haniy was killed by an Israeli rocket. Israel has not admitted killing the Hamas political leader.
“Crossing the red line”
Earlier, Hezbollah military commander Fuad Shukr was killed, and Hezbollah leader Hassan Nasrallah indicated that Hezbollah's war with Israel had entered a new phase.
“By killing our military commander Fuad Shukr, Israel has crossed a red line and must expect fury and revenge,” Nasrallah said last week.
Shukr, also known as Hajj Mohsin, was a close advisor to Hezbollah leader Hassan Nasrallah. The Israeli military says Shukr was responsible for numerous deadly attacks on Israel.
USA accused him of complicity in planning and carrying out the bombing of American military barracks in Beirut in 1983, which killed 241 American and 58 French soldiers.
Serious Risks Ahead for Oil Markets
“Serious geopolitical risks loom over oil markets,” says Warren Patterson, head of commodity strategy at ING Groep NV, in a market note. Singapore.
“Escalating tensions in the Middle East could lead to short-term volatility in fuel markets, but a real disruption to oil supplies from that region would trigger a lasting push for higher prices,” he added.
US Secretary of State Antony Blinken told his G-7 counterparts on Sunday that an attack on Israel by Iran and Hezbollah could begin as early as Monday, Axios reports, citing several anonymous sources familiar with the matter.
Blinken reportedly said the U.S. did not know the exact time of the attack, but it was expected to begin within the next 24 to 48 hours.
Main image source: Shutterstock