Oil At 6-Month High As Alleged Israel Airstrike On Damascus Fuels Concerns Over Wider Middle-East Conflict
Portfolio Pulse from Neil Dennis
An alleged Israeli airstrike in Damascus targeting an Iranian consulate killed a top IRGC commander and others, fueling concerns over a wider Middle-East conflict. This event, along with ongoing cross-border strikes, has contributed to oil prices reaching a six-month high, with Nymex West Texas Intermediate crude oil future price up 17% since the start of the year to $83.90 a barrel. The United States Oil Fund (USO) also saw a 19.4% increase, reaching a six-month high of $79.60.
April 01, 2024 | 7:24 pm
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The United States Oil Fund (USO) reached a six-month high of $79.60, reflecting a 19.4% increase since the start of the year, amid rising oil prices due to escalating Middle-East tensions.
The increase in the USO's price is directly linked to the rising tensions in the Middle East, particularly the alleged Israeli airstrike in Damascus and the potential for further escalation. These geopolitical events have historically influenced oil prices due to concerns over supply disruptions. The recent events have led to a significant rise in oil prices, which is reflected in the performance of the USO, an ETF that tracks the price of U.S. oil.
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