From the Liveblog of
Monday, August 26, 2024
Oil prices surge over Middle East tensions
Oil prices are jumping today, over escalating Middle East tensions, while stock markets are wavering, after getting a boost last week from talk of a US interest-rate cut.
The price of Brent, the global crude benchmark, rose 2.5 percent to trade at almost $81 per barrel.
Stock markets were mixed, taking a breather after rising on Friday when US Federal Reserve chief Jerome Powell signaled that a rate cut was coming.
Israel and Hezbollah traded a barrage of fire Sunday after 10 months of cross-border clashes.
Oil prices surged by more than 3% at one stage, but eased slightly, as both sides appeared to show restraint despite Sunday’s flare-up.
The oil market was also reacting to Libya’s eastern-based administration declaring that it was shutting down oil fields under its control and “suspending all production and exports until further notice.”
The move by the Benghazi-based administration, which controls most of the country’s oil fields, comes amid rising tensions after the UN-recognized government based in Tripoli replaced the central bank governor this morning.
