Analysts: Oil prices to remain high amid Middle East tensions

An analyst for the Commonwealth Bank of Australia said that oil prices will remain high amid the threat of tensions in the Middle East.

Israeli Army Radio recently reported that 100 Israeli warplanes participated in an attack targeting more than 200 sites in Lebanon early Sunday. Meanwhile, Hezbollah said it fired 320 Katyusha rockets at Israel and hit 11 military targets.

Following these events, US West Texas Intermediate crude rose by 0.75% to $75.39 a barrel, while Brent crude rose by 0.67% to $79.55.

Brent crude futures are also expected to range between $75 and $85 a barrel in September, with greater potential for a rise if hopes for a truce in Gaza fade.

Although some analysts have downplayed the risk of conflict, Vivek Dhar, mining and commodities strategist at the Commonwealth Bank of Australia, said tensions in the Middle East and the risk of a wider conflict would keep oil prices high.