Middle East Tensions Offset by Hopes for Ukraine Peace Deal
Oil prices were mixed on Thursday as investors weighed the escalation of tensions in the Middle East against the possibility of a peace deal between Russia and Ukraine. Brent crude futures settled down 11 cents, or 0.12%, at $95.52 a barrel, while US West Texas Intermediate crude futures rose 29 cents, or 0.32%, to $91.30.
The price movement came after the US launched strikes on Iran earlier in the week, which killed 18 people and wounded 108. Israeli Defence Minister Israel Katz renewed warnings that Israel would 'cripple' Iran's military and civilian infrastructure if Tehran launched attacks against it.
However, comments from Russian President Vladimir Putin indicating openness to peace negotiations with Ukraine could help ease concerns about Russian fuel supply disruptions, said Phil Flynn of Price Futures Group. Putin stated that there was a chance of reaching an agreement to end the war in Ukraine, with several countries including the US and China ready to support a peace settlement.