Oil prices gained in Asian trading on Wednesday as tensions in the Middle East escalated following Israel’s strike on Hamas positions in Qatar, raising concerns about possible supply disruptions.
Prices were further supported by the likelihood of additional U.S. sanctions on Russian oil, after reports indicated that President Donald Trump urged further restrictions on Russian energy buyers.
Brent crude for October delivery increased 0.7% to $66.92 a barrel, while West Texas Intermediate (WTI) futures also rose 0.7% to $62.72 a barrel by 21:41 ET (01:41 GMT). Both benchmarks were on track for a fourth consecutive day of gains, bolstered by OPEC+’s smaller-than-expected output hike over the weekend.
Israel Targets Hamas in Qatar
Late Tuesday, Israel announced an attack on Hamas leadership in Doha, drawing criticism from both Qatari and U.S. officials, who warned that the strike could jeopardize ongoing peace negotiations.
Oil had surged nearly 2% on Tuesday after the strike but pared some gains after U.S. authorities stated that a similar attack would not occur again. Trump told reporters he was “very unhappy” about the strike and promised a full statement on Wednesday.
Qatar, a U.S. security partner hosting the al-Udeid Air Base—the largest American military facility in the Middle East—along with Egypt, has served as a mediator in talks between Israel and Hamas.
Hamas claimed that Israel failed in its attempt to assassinate its negotiating team, though the group confirmed five casualties from the strike. The attack casts uncertainty over future peace talks, leaving the door open for continued military operations by Israel, mostly concentrated in the Gaza Strip, heightening market concerns about Middle East stability.
U.S.-Russia Sanctions and Trade Measures in Focus
The possibility of further U.S. sanctions against Russia also helped push oil prices higher. Reuters reported that Trump has urged the European Union to impose steep tariffs on India and China over their purchases of Russian energy.
Trump has already enacted 50% tariffs on India and reportedly called for 100% tariffs on both New Delhi and Beijing. “Such a move could cut off some sources of revenue for Russia and pressure Moscow into ending its long-running war with Ukraine,” analysts noted.
Additional restrictions on Russian oil could tighten global supply, especially if major buyers such as India and China comply with Western pressure. However, both countries have so far indicated little intention to reduce their purchases.
Beyond geopolitical concerns, traders were also paying attention to U.S. inventory figures. The American Petroleum Institute reported that U.S. crude stocks increased by 1.25 million barrels in the week ending September 5.
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