Crude oil prices rise modestly after Israeli attack on Qatar

Crude oil prices rose on Wednesday after Israel struck Hamas leaders in the Qatari capital and US President Donald Trump called on Europe to impose tariffs on buyers of Russian oil.

Brent crude rose 0.53% to $66.74 a barrel, while US WTI crude rose 0.57% to $62.99, Reuters reported.

Both benchmarks briefly rose nearly 2% after reports of an attack that Qatar’s prime minister said threatened peace talks, but retreated after the US assured the country’s government that such a thing would not happen again.

Analysts note the restrained market reaction to this event, as well as skepticism about Trump’s statements about possible tightening of restrictions on Russian oil, since, according to sources, he also called on the EU to impose 100% tariffs on China and India, major buyers of Russian raw materials.

LSEG believes that the spread of secondary tariffs on such buyers could disrupt Russian exports and limit supply on the world market, but uncertainty remains, as aggressive steps may contradict the US government’s intentions to curb inflation and influence the Fed’s decisions.

Currently, traders expect a Fed rate cut as early as next week, while the US Energy Information Administration warns of pressure on prices in the coming months due to rising inventories amid increased OPEC+ production, which is holding back further rally.

Tags: prices