Oil prices increased in early Asian trading on Tuesday, reversing previous losses as worries about an escalating Middle East conflict impacting supplies outweighed fears of a potential U.S. recession affecting demand in the top oil consumer.
Several U.S. personnel were injured in an attack on a military base in Iraq on Monday, heightening tensions in the region following the recent killings of senior members of Hamas and Hezbollah. U.S. West Texas Intermediate crude futures rose by 1.6% to $74.12 per barrel in early Asian trade.
The rise in oil prices can be attributed to concerns about potential supply disruptions due to the escalating conflict in the Middle East. This could have implications for global oil markets and impact consumers worldwide.