Overview

• Oil prices have risen nearly 4% this week, reversing some losses from the previous week, as tensions in the Middle East escalate.
• Brent crude and West Texas Intermediate futures have both seen significant gains, despite a large build in US crude inventories.
• The conflict between Israel and Hezbollah, along with Israeli strikes on Syria and Lebanon, has heightened concerns over potential disruptions to oil supply.
• US crude inventories rose by 5.5 million barrels last week, far exceeding analysts' expectations and contributing to market fluctuations.
• The upcoming US presidential election adds further uncertainty, with potential policy shifts impacting both Middle East diplomacy and oil markets.