Oil prices experienced a significant jump following an Israeli military operation in Doha, Qatar. West Texas Intermediate (WTI) crude climbed as much as 2.3 per cent, exceeding $US63 a barrel after the Israel Defence Forces (IDF) conducted a strike targeting senior Hamas leadership. The attack has heightened concerns over potential disruptions to global oil supplies, given the Middle East accounts for approximately one-third of the world’s total supply.
Reports indicate multiple explosions were heard in Doha, with Qatar condemning the attack as a violation of international law. This marks the first Israeli strike in Doha since the beginning of the ongoing conflict, raising worries about the stability of the region’s energy markets. The timing of the attack is particularly sensitive, potentially undermining efforts by the United States to broker a peace agreement between Israel and Hamas.
Israel has claimed full responsibility for the operation, characterising it as a “wholly independent” action. However, analysts suggest the attack could have far-reaching consequences beyond the immediate impact on oil prices. Gregory Brew, an analyst with Eurasia Group, noted the attack would likely negatively impact ceasefire talks between Israel and Hamas.
Furthermore, the incident could strain relations between the United States and Qatar, which hosts a major US military base. The geopolitical ramifications of the strike add a layer of uncertainty to the already volatile oil market, suggesting prices may remain elevated in the near term.
