Oil prices experienced a significant surge on Wednesday due to escalatingtensions in the Middle East following a devastating explosion at a Gazahospital, which raised concerns about potential disruptions in oil supplyfrom the region.
Brent crude futures saw a rise of $1.75, equivalent to 2%, reaching $91.65per barrel at 0609 GMT. Similarly, West Texas Intermediate crude (WTI)futures increased by $1.91, or 2.2%, reaching $88.57 per barrel.
During earlier trading sessions, both benchmarks soared by more than $2,reaching their highest levels in two weeks. In response to these events,Jordan decided to cancel a summit it was scheduled to host with U.S.President Joe Biden, as well as Egyptian and Palestinian leaders.
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The cancellation of the summit between President Biden and Arab leaders isseen as diminishing the likelihood of a diplomatic resolution to theIsrael-Hamas conflict, according to Vivek Dhar, an analyst at CommonwealthBank of Australia, as noted in a client message.