Oil prices were steady near six-month highs after rising by a dollar a barrel in the prior session as investors braced for a potential attack on Israeli interests by Iran, OPEC’s third-largest oil producer, Reuters reports.
Brent crude futures were up 27 cents or 0.3 per cent to $90.75 a barrel at 0632 GMT, while US West Texas Intermediate crude futures gained 25 cents or 0.3pc to $86.46 a barrel.
The Middle East is on alert for possible Iranian retaliation for a suspected Israeli air strike on Iran’s embassy in Syria.
“Prices remain sensitive to geopolitical developments in the Middle East, with market participants pricing for the risks of supply disruptions if tensions were to drag for longer,” said Yeap Jun Rong, market strategist at IG.
“This aids to offset some risk-off sentiments overnight, as markets recalibrate their rate expectations to price out a June rate cut and for rates to be kept high for longer until September,” added Yeap, referring to US interest rates.
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