Oil rises as geopolitical risks persist

Oil continued to rise after Iran reportedly ordered attacks on Israel in retaliation for the assassination of Hamas leader Ismail Haniyeh on its soil. Brent crude rose 3.6% in the previous session topping $81 a barrel, while U.S. crude was trading above $78. Iran’s Ayatollah Ali Khamenei gave the direct order to attack Israel, the New York Times reported. The rally came ahead of a review meeting by key members of the Organization of the Petroleum Exporting Countries and their allies. Representatives expect no changes to plans to restart production from the fourth quarter at the group’s session on Thursday. “Oil markets are concerned that Haniyeh’s assassination would directly bring Iran into a war with Israel. This could put Iran’s oil supplies and related infrastructure at risk,” said Vivek Dhar, an analyst at the Commonwealth Bank of Australia. Crude oil fell monthly in July but is still higher this year amid growing concerns about demand from top importer China. The bull market has been driven by tensions in the Middle East, the source of about a third of the world’s crude, and expectations that OPEC+ restrictions and monetary easing will boost U.S. demand. Fed Chair Jerome Powell said on Wednesday that a rate cut could come in September.