NEW YORK: Oil prices rose more than 1 percent on Tuesday after the Israeli military said it carried out an attack on Hamas leadership in Qatari capital Doha, an expansion of its years-long military campaign across the Middle East.
Qatar, a major global energy exporter, condemned the attack as “cowardly” and called it a violation of international law.
Brent crude futures rose 74 cents, or 1.1 percent, to USD66.76 a barrel by 11:39 a.m. ET, after hitting a session high of USD67.38. US West Texas Intermediate crude futures also climbed 74 cents, or 1.2 percent, to USD63 a barrel.
The attack on Qatar came hours after Israel said it was about to obliterate Gaza City. Analysts called it a major escalation of Israel’s military campaign across the Middle East.
“The escalation could cause a response for more Arab nations to take a harder stance on Israel,” StoneX analyst Alex Hodes said.
Iran, the United Arab Emirates, Turkey and Saudi Arabia, de facto leader of the OPEC+ group of oil exporters were among countries that condemned the attack in Qatar.
Israel has previously launched attacks on Iran, Syria, Lebanon and Yemen as part of its nearly two-year campaign in Palestine, which has killed more than 64,000 people according to local authorities.
Israel claims its campaign in Gaza is self-defense after an attack by Hamas on October 7, 2023. Israel tallies show Hamas killed 1,200 people and took 251 hostages in Israel that day.