Oil prices surge above $76 as Middle East tensions fuel market concerns

ERBIL (Kurdistan24) – Global oil prices rebounded sharply on Friday following two consecutive sessions of decline, with Brent crude surpassing $76 per barrel amid growing concerns over potential escalation of conflicts in the Middle East.

As of Oct. 25, 2024, Brent crude traded at $76.06 per barrel, marking a 2.22% increase from the previous session. This surge comes after Thursday's trading saw prices drop to $74 per barrel.

The energy market remains volatile as ongoing conflicts in the Middle East continue to create uncertainty.

Market analysts maintain concerns about potential Israeli strikes against Iran and their possible impact on global oil supply chains. Adding to the market anxiety is the uncertainty surrounding the upcoming U.S. presidential elections, which could significantly influence American policies in the Middle East.

"Geopolitics is the driving force today," said Tim Snyder, chief economist at Matador Economics. "We're all watching the U.S. elections closely, as they could have a substantial impact on market directions."

Market experts emphasize that traders are seeking clarity on both the ongoing conflicts and election outcomes, with electoral uncertainty particularly affecting market sentiment.

However, the price surge has been somewhat contained by concerns over potential increased oil supply, particularly from OPEC+ member countries, coupled with expectations of slower demand growth. These factors have created additional market pressures, limiting more substantial price increases.

The current market dynamics reflect a complex interplay between geopolitical tensions, political uncertainty, and fundamental supply-demand factors, all contributing to the ongoing volatility in global oil markets.

Kurdistan24 correspondent Yadegar Sadeeq did further reporting.