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Oil prices rise about 3% amid fears of escalating conflict
U.S. crude oil prices rose about 3% on Tuesday, October 1, after the United States warned of a possible imminent attack by Iran against Israel.
WTI crude futures for November delivery rose $2.01, or 2.95%, to $70.22 a barrel, while Brent crude futures for December delivery rose $1.95, or 2.82%, to $73.72 a barrel.
Senior White House and Defense Department officials told NBC News that the United States "has indications that Iran is preparing an imminent ballistic missile attack against Israel."
A U.S. official told Reuters on Tuesday that a potential Iranian attack could be as large or larger than the one that occurred in April, but that assessment is based on preliminary indications and is difficult to verify.
Tensions in the Middle East have escalated sharply over the past week, with Israel hitting the Iran-backed Hezbollah group with air strikes, killing its leader Hassan Nasrallah. Netanyahu’s government sent ground troops into southern Lebanon on Tuesday.
OPEC+, which groups OPEC members and allies such as Russia, is set to raise output by 180,000 barrels per day in December.
Oil markets have been under pressure from weaker-than-expected demand growth this year, particularly in China, the world’s biggest importer of crude.
Demand concerns were reinforced on Monday after data showed manufacturing activity in the world’s second-largest economy contracted for a fifth straight month in September.
Brent crude futures ended September down 9%, their third straight monthly decline and the biggest monthly drop since November 2022. They plunged 17% in the third quarter, their biggest quarterly loss in a year.
