Crude oil prices experienced their most significant one-day increase in over nine months Wednesday due to escalating geopolitical tensions in the Middle East. West Texas Intermediate (WTI) light crude closed the session at $78.41 per barrel, up 4.9%, marking its largest spike since October 2023.
Iran’s supreme leader Ayatollah Ali Khamenei has reportedly ordered retaliation against Israel following the death of Hamas leader Ismail Haniyeh in Tehran, heightening fears of potential escalation in the region and serious disruptions in the oil supply chain. The New York Times, citing three Iranian officials briefed on the order, reported that Khamenei has directed Iran to strike Israel directly.
The Israeli shekel fell 1% against the dollar on Thursday, marking its third consecutive session of losses. Israeli stocks, as tracked by the iShares MSCI Israel ETF EIS, closed 0.2% higher, snapping two straight sessions of losses.
Chart: Oil Prices Notch Strongest Session In Over 9 Months
UN Security Council Holds Emergency Meeting
The United Nations Security Council is holding an emergency meeting Wednesday called by Iran.
In her opening remarks, Rosemary DiCarlo, the U.N.’s under-secretary-general for political and peacebuilding affairs, said that Iran accused Israel of carrying out an attack that killed Haniyeh, claiming it was a serious infringement of Iranian sovereignty and territorial integrity and a blatant violation of international law.
Iran’s supreme leader and other senior officials have vowed to avenge Haniyeh’s death, warning Israel of “harsh punishment intended to instill deep regret in the perpetrator.” Various non-state armed groups aligned with Iran across the region have also threatened to retaliate against Israel.
DiCarlo called for vigorous efforts toward regional de-escalation in the interest of long-term peace and stability. The international community must work together to prevent any actions that could rapidly escalate the conflict, she said, adding that swift and effective diplomatic efforts towards de-escalation are essential.
China firmly opposed and strongly condemned the assassination of Haniyeh in Tehran, as well as “a series of recent irresponsible actions, including Israel’s attack on southern Beirut.”
China reiterated that military means and the abuse of force are not solutions to problems and will only lead to greater crises.
Algeria’s U.N. ambassador said: “We are on the precipice of catastrophe, as Israel committed an act of terror, violating international law.” He strongly condemned Israel, stating these are not acts of self-defense but brutal aggression. He called for an immediate, unconditional ceasefire in the Gaza Strip.
US Says Israel ‘Has A Right To Defend Itself’
“Israel has a right to defend itself against attacks from Hezbollah and other terrorists,” U.S. ambassador Robert A. Wood said.
Israel’s response on July 30 to Hezbollah’s July 28 attack on Majd al Shams, which killed 12 children, was justified, Wood said. He stated unequivocally that Hezbollah was responsible for the attack, which he said used an Iranian weapon and was launched from a Hezbollah-controlled area in Lebanon.
“We call on the Security Council to send an unambiguous message to Hezbollah by standing with Israel as it defends itself against Hezbollah’s repeated attacks,” Wood added.
The United States was not aware of or involved in the apparent death of Haniyeh, he said.
“Indeed, we have no independent confirmation as to Hamas’s claims regarding his death.”
Secretary of State Antony Blinken earlier advised against speculating on the impact that recent events may have on peace and security in the Middle East, Wood told the U.N. Security Council meeting.
A broader war is neither imminent nor inevitable, despite opportunistic attacks by Iran and its network of terrorist proxies and partners, Wood said, adding that the U.S. remains committed to a diplomatic outcome to restore calm.
“Every member of the Security Council should call on Iran to stop arming, advising, and financing terrorist groups and to rein in the actions of proxies and partners who threaten regional peace and security,” Wood said.
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