A pump crane works in front of a drilling rig at sunset at an oil field in Midland, Texas, on August 22, 2018.
Nick Oxford | Reuters
Crude oil futures rose on the first day of second-quarter trading on Monday amid reports that the Iranian consulate in Damascus, Syria, was under a missile attack.
the West Texas Intermediate The contract for May delivery gained 54 cents, or 0.65%, to settle at $83.71 a barrel. the Brent The June delivery contract added 50 cents, or 0.57%, to $87.50 a barrel.
Syrian and Iranian official media reported on Monday that an Israeli missile strike hit the Iranian consulate in Damascus. A Lebanese security source told Reuters that the senior commander of the Iranian Revolutionary Guard, Mohammad Reza Zahedi, was among the dead.
“This news, if confirmed, represents a clear escalation of the conflict in the Middle East and is likely to continue to boost oil prices in the near term,” Leo Mariani, an analyst at Roth MKM, told clients on Monday.
Geopolitical risks remain present in the market with Ukraine striking Russian oil refineries, and Houthi armed attacks in the Red Sea diverting crude oil shipments around the Cape of Good Hope in South Africa.
Oil is also higher in 2024 thanks to expectations of strong global demand as OPEC+ keeps barrels off the market through at least the second quarter.
US crude and Brent achieved gains for three consecutive months. West Texas Intermediate crude oil has risen 17.8% this year, while Brent has risen 14.2%.
