Oil is set to finish the week on a higher note

Oil prices headed for a weekly gain after Prime Minister Benjamin Netanyahu’s rejection of a possible ceasefire in the Israel-Hamas war raised risks in the Middle East. Brent crude rose more than 3% on Thursday, its biggest daily gain in a month, to trade below $82 a barrel after the Israeli leader’s comments spurred algorithmic buying. U.S. crude was above $76. The move of almost 6% this week has reversed much of last week’s slump, partly fueled by optimism that the two sides were nearing a standstill. Netanyahu said he saw “no solution short of total victory” and that Iraq’s threat to withdraw support for the U.S.-led coalition was adding to tensions in the major oil-producing region. Shipping companies also warned that the security situation in the Red Sea was continuing to deteriorate. “This has been a volatile week for oil prices as hopes of easing tensions in the Middle East failed to receive much-needed validation. Market participants are pricing in geopolitical risks to persist for an extended period,” said Yeap Jun Rong, Market Strategist at IG Asia Pte.