Oil maintains gains

Oil is holding on to gains from this week’s rally as the market awaits Iranian retaliation. Oil has steadied after a week of gains and the market is on edge about a possible Iranian retaliatory strike on Israel in response to the assassinations of Hamas and Hezbollah leaders. Brent futures rose 2.4% on Wednesday to trade near $79 a barrel, while U.S. crude is above $75. Israel continues to prepare for an attack, even as comments from the Iranian president in a phone call with his French counterpart hinted at a diplomatic path to de-escalation. Oil rebounded after falling to a seven-month low on Monday amid a slump in global stock markets. The halt in crude production at Libya’s largest field supported gains, while a cross-border offensive by Ukrainian troops into Russia added to geopolitical tensions. “We can’t ignore supply risks. But there are still macro risks that could create headwinds for oil,” said Zhou Mi, an analyst at the Chaos Research Institute in Shanghai.