Oil prices in Middle East

Oil prices surged over 2% on Wednesday following the assassination of Hamas leader Ismail Haniyeh in Tehran, which escalated tensions in the Middle East. Brent crude futures rose to $80.60 a barrel, while West Texas Intermediate climbed to $76.20 a barrel, as concerns over regional stability overshadowed a significant drawdown in U.S. crude stockpiles. The U.S. reported a decrease of 3.4 million barrels in crude stockpiles, more than three times analysts' expectations. However, analysts caution that unless there is damage to critical oil infrastructure, the recent price spike may be temporary. The situation is further complicated by ongoing economic concerns regarding China's oil demand and an upcoming OPEC+ meeting to discuss production levels. The geopolitical landscape remains volatile, with retaliatory threats from Iran and Hezbollah following the recent killings, complicating ceasefire negotiations.