Escalating Middle East Tensions Drive Oil Prices Higher

In a dramatic response to recent hostilities, crude oil futures witnessed a significant uptick on Tuesday. This surge comes in the wake of Israel's retaliatory strikes against multiple locations in Yemen, following an attack by Houthi forces on Tel Aviv's Ben-Gurion Airport. Adding to the tension, Hamas has declared its withdrawal from truce discussions with Israel, citing the ongoing humanitarian crisis in the Gaza Strip as a 'hunger war' against Palestinians.

Market Reaction to Geopolitical Unrest

West Texas Intermediate (WTI) for June deliveries soared by 4.29% to $59.58 per barrel at 10:13 am ET. Similarly, Brent crude for July settlements experienced a 3.70% increase, reaching $62.55 per barrel shortly thereafter. These developments underscore the oil market's sensitivity to geopolitical instability in the Middle East.