Oil prices climbed over $1 per barrel on Tuesday after the Israeli military confirmed an attack on Hamas leadership in Doha, Qatar. The strike marked an expansion of Israel’s long-running military campaign in the Middle East.
Qatar, one of the world’s top energy exporters, condemned the attack, calling it “cowardly.”
By mid-morning, Brent crude futures rose $1.18, or 1.8%, to $67.20 per barrel. U.S. West Texas Intermediate (WTI) crude gained $1.14, or 1.8%, to $63.40.
Oil was already trading higher, supported by several factors. These included a smaller-than-expected output increase from OPEC+, China’s continued oil stockpiling, and growing fears of new sanctions on Russia.
Traders are now watching closely for fresh market data. Weekly U.S. inventory reports are due Wednesday, while monthly reports from OPEC and the International Energy Agency will be released Thursday.
Sanctions risk also added support to crude prices. Speculation grew after Russia’s largest air strike on Ukraine ignited a government building in Kyiv. U.S. President Donald Trump said he is prepared to move into a second phase of sanctions, which could further reduce Russia’s oil exports.
At the same time, markets are focused on the U.S. Federal Reserve’s meeting on September 16–17. A widely expected interest rate cut could boost economic growth and energy demand. Lower borrowing costs often encourage consumer spending and raise oil consumption.
“Both commodities and equities are expected to closely follow the Fed’s policy decision, with another cut likely after the weak jobs report,” said Alex Hodes, analyst at StoneX.
