Brent Crude Rises on Escalating Middle East Tensions
Oil prices rose in early Asian trading as tensions between Israel and Hezbollah escalated. The global benchmark, Brent crude, gained 0.5% after a deadly airstrike killed 11 people, including a senior Hezbollah commander.
The attack was retaliation for an earlier Hezbollah strike that wounded three Israeli soldiers, according to Prime Minister Benjamin Netanyahu. This latest violence could further complicate already stalled talks between the US and Iran over reopening the Strait of Hormuz.
Geopolitical uncertainty continues to weigh on sentiment, with Kyle Rodda, a senior analyst at Capital.com, noting that it remains 'the biggest headwind for markets right now'. The dollar fell to its lowest level since May as expectations for a September rate hike by the Federal Reserve eased.