Oil prices rise after Israeli strike in Qatar, Trump's tariff push

Oil prices rose on Wednesday after reports of an Israeli strike targeting Hamas leadership in Qatar and continued urging by U.S. President Donald Trump for Europe to impose tariffs on Russian oil buyers. Gains, however, were capped by weak fundamentals and concerns over rising global inventories.According to information,brent crude futures climbed 35 cents, or 0.53 per cent, to $66.74 a barrel by 0033 GMT, while U.S. West Texas Intermediate (WTI) crude gained 36 cents, or 0.57 per cent, to $62.99 a barrel. Both benchmarks had settled about 0.6 per cent higher in the previous session.
Markets initially rose nearly 2 per cent after Israel confirmed the strike in Doha, which Qatar’s prime minister warned could derail ongoing peace talks with Hamas. Prices retreated after U.S. officials assured Qatar that such incidents would not be repeated.“The modest reaction in crude oil prices to this news, along with scepticism regarding Trump’s push for tougher sanctions, leaves crude oil vulnerable to lower prices,” said Tony Sycamore, market analyst at IG.According to sources, Trump has urged the European Union to impose 100 per cent tariffs on China and India for their continued purchases of Russian oil. Both countries remain critical buyers, helping Moscow sustain its economy despite Western sanctions following its 2022 invasion of Ukraine.“Expanding secondary tariffs to China and India could disrupt Russian crude exports and tighten global supply, a bullish signal for oil,” analysts at London Stock Exchange Group (LSEG) noted. However, they cautioned that aggressive action could complicate U.S. efforts to manage inflation and influence Federal Reserve policy.
Traders are anticipating a rate cut at the U.S. Federal Reserve’s policy meeting next week, which could stimulate economic activity and boost energy demand. Still, analysts highlight that underlying fundamentals remain weak.The U.S. Energy Information Administration (EIA) said crude prices are likely to remain under pressure in the coming months due to swelling inventories as OPEC+ ramps up production.While geopolitical tensions provided short-term support, the oil market’s trajectory continues to be shaped by broader supply-demand imbalances and monetary policy expectations. Analysts caution that without sustained disruptions to supply, prices may struggle to hold recent gains.

(Business Correspondent)