London/IBNS: Crude oil prices climbed 1 percent on Monday (Aug 26) on renewed concerns that an escalating Gaza conflict could disrupt regional oil supplies, extending gains from Friday when the prospect of US interest rate cuts lifted the global economic and fuel demand outlook, reports Reuters.
According to reports, Brent crude futures rose 79 cents, or 1 percent, to $79.81 a barrel by 0910 GMT, while the US crude futures were at $75.63 a barrel, up 80 cents, or 1.07 percent.
In one of the biggest clashes in more than 10 months of border warfare, Hezbollah fired hundreds of rockets and drones into Israel on Sunday (August 25), as the Israeli military said it struck Lebanon with around 100 jets to thwart a larger attack, Reuters reported.
The clash raises fears the war in Gaza conflict risks becoming a regional conflict that would draw in Hezbollahs backer Iran and Israels main ally the United States, though so far no oil output has been affected, according to Reuters.
Both oil benchmarks gained more than 2 percent on Friday after thd United States Federal Reserve Chair Jerome Powell endorsed the start of interest rate cuts, as reported by Reuters.
Jerome Powell, while addressing the Jackson Hole Economic Symposium on Friday, said the time has come for policy to adjust.
The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks, Powel said.
