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After Iran’s strike on Israel over the weekend turned out to be less devastating than expected, fears of a rapidly escalating conflict that may replace barrels of crude oil initially subsided. However, oil prices closed Monday’s session down
 "Oil prices rise as Israel weighs response to Iran attack")
An aerial view shows Majnoon oil field near Basra, Iraq. Reuters File
Tuesday saw an increase in oil prices due to increased Middle East tensions following Israel’s military chief’s declaration that his nation will retaliate against Iran for its weekend missile and drone strike, despite requests from allies for moderation.
By 0005 GMT, June delivery Brent futures had increased by 46 cents, or 0.5%, to $90.56 per barrel. May delivery of U.S. oil futures saw a 0.5% increase, or 43 cents, to $85.84 a barrel.
After Iran’s strike on Israel over the weekend turned out to be less devastating than expected, fears of a rapidly escalating conflict that may replace barrels of crude oil initially subsided. However, oil prices closed Monday’s session down.
The missiles were shot down by Israel’s Iron Dome defence system, resulting in very little damage from the attack, which Iran said was revenge for an airstrike on its consulate in Damascus.
However, a government source stated that Israel’s Prime Minister Benjamin Netanyahu called a meeting of his defence cabinet on Monday for the second time in less than twenty-four hours to discuss how to respond to Iran’s first-ever direct strike on Israel. The market became concerned that retaliatory actions would affect the flow of oil as a result.
Iran is one of the top producers of crude oil in the Organisation of the Petroleum Exporting Countries (OPEC), producing around 3 million barrels daily.
Friday saw benchmarks surge in front of Iran’s counterattack, sending prices skyrocketing to levels not seen since October.
In China, the world’s biggest oil importer, official gross domestic product figures due on Tuesday are expected to show growth slowed to 4.6% year-on-year from 5.2% in the previous three months. That would maintain pressure on policymakers to unveil more economic stimulus measures that could boost oil prices.
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