Crude oil prices rose to their highest level since October last year as investors closely monitored the threat of new supplies amid escalating conflicts in the Middle East and a Ukrainian drone attack on a key Russian oil refinery.
West Texas Intermediate (WTI) oil for the May contract rose $1.44 (1.72%) to settle at $85.15 a barrel.
Brent crude for the June contract increased $1.53 (1.75%) to $88.94 per barrel.
Most have traded in a narrow range between $75 and $85 a barrel since the beginning of the year. However, rising geopolitical risks and strong economic data appear to have pushed the move higher.
More recently, OPEC member Iran blamed Israel for Monday's airstrikes on its embassy in the Syrian capital, Damascus. Seven of his officers were killed in the attack.
Yesterday, Tehran vowed to retaliate for the attack, which was seen as a sign of escalation in the Israel-Hamas conflict.
PVM's Varga warned that Iran's potential direct involvement in the Israel-Hamas war could trigger a region-wide conflict with a high impact on the world's crude oil supply.
Ukraine also attacked one of Russia's largest oil refineries with a drone attack in the Tatarstan region, southeast of Moscow, about 1,300 kilometers from the war zone.
Russia, which is a giant in the Organization of the Petroleum Exporting Countries (OPEC+), is now stepping up its attack on energy infrastructure in Ukraine.
The ongoing war conflict can drag global crude oil prices to a more risky position.
