Oil Rises for Third Day as Israeli Strikes Stoke Mideast Tension

Oil climbed for a third day as escalating tensions in the Middle East overshadowed concerns about a potential global glut, Bloomberg reported.

Brent crude traded near $72 a barrel, up about 5% from its three-year low earlier this month. Israel launched a series of military strikes across Gaza, shattering a ceasefire with Hamas while the US ups the pressure on Iran.

Options markets have been quick to price a pickup in geopolitical risk. Premiums on bearish put options declined relative to bullish calls on Monday, and the day’s trading was dominated by a flurry of $100-a-barrel wagers.

US President Donald Trump said he would view attacks by Yemen’s Houthis on shipping as equivalent to direct affronts by Iran. Ahead of the latest spike in tensions, which have seen American forces targeting the rebels, his administration had already tightened sanctions against Tehran.

“Renewed geopolitical uncertainty following Israel’s overnight military attacks in Gaza has contributed to the price increase,” said Arne Lohmann Rasmussen, chief analyst at A/S Global Risk Management. “If anyone in the market believed that Trump could secure peace in the Middle East, that belief is likely fading.”