Oil Prices Increase Due to Conflict in Middle East Global Oil Prices on 10/20/23

This article comes from a news platform in Iraq.   A ground invasion by Israel into Gaza could spark a broader conflict in the Middle East, causing Asian markets to fall and oil prices to rise Friday.

Federal Reserve chief Jerome Powell hinted at a pause in interest rate hikes at the bank's next meeting but left the possibility of another hike open.

After Hamas militants killed at least a thousand or more on October 7, traders are watching developments in the Middle East.

There have been more than 3,700 Palestinian deaths, mainly civilians, across Gaza due to relentless bombardment, and tensions have been heightened by an explosion at a hospital this week.

Several observers believe such a scenario becomes more likely if Israel embarks on a land offensive, raising fears that the region could be embroiled in a wider war.

According to the Pentagon, a US Navy ship in the Red Sea shot down missiles and drones fired by Iran-backed Houthi rebels in Yemen, possibly at Israel.

Oil prices surged Friday on fears of a Middle East war, and both contracts extended the week's gains.

As long as Israel-Hamas tensions remain high, crude prices will remain susceptible to further spikes.

As the Fed battles to contain inflation, traders worry that US interest rates will remain high for some time.

With a focus on incoming data, his comments echoed those of his colleagues on the policy board in recent weeks.

Around 0230 GMT, key figures -

At $89.26 per barrel, West Texas Intermediate is up 1.0 percent.

A barrel of Brent North Sea crude rose by 0.8 percent to $92.15

Dow: Down 0.8 percent at 33,414.17 points (close)

London - FTSE 100: Down 1.2 percent to 7,499.53 (close)