Oil prices fall on signs Hamas-Israel conflict unlikely to broaden, hotter than expected PPI
Crude futures experienced a decline of over 2% in response to a Producer Price Index inflation print that exceeded expectations. Additionally, signs indicated that the conflict between Israel and Hamas might not escalate to involve other countries, particularly Iran. By the mid-session on Wednesday, West Texas Intermediate (CL=F) was trading slightly above $84 per barrel, while Brent International (BZ=F) remained above $86 per barrel. According to a New York Times report released on Wednesday morning, US intelligence suggests that Iranian leaders were caught off guard by the Hamas attack in Israel. This suggests that further sanctions from Western nations against Tehran or targeting Iran itself are less likely. On Monday, oil prices surged over 4% following a surprise attack on Israel by the Palestinian Islamist group Hamas, raising concerns about a broader conflict erupting in the Middle East region. Conflict remains confined to Israel and Hamas Prices stabilized by Tuesday, as...