Oil prices fall as traders unfazed by Israel-Hezbollah escalation
A rocket attack threatens to spark war between Israel and Hezbollah.
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Smoke billows following an Israeli airstrike in the southern Lebanese border village of Chihine on July 28, 2024.
Kawnat Haju | Afp | Getty Images
Crude oil futures fell on Monday as traders appeared unfazed by the risk of widening war between Israel and the Iran-backed militia Hezbollah.
A rocket fired from Lebanon killed 12 children in the Israel-occupied Golan Heights on Saturday. Israel has blamed Hezbollah for the attack. The militia has denied responsibility.
Israel's security cabinet has authorized Prime Minister Benjamin Netanyahu's government to decide on how and when to respond to the rocket attack.
Here are today's energy prices:
West Texas Intermediate September contract: $76.86 per barrel, down 30 cents, or 0.4%. Year to date, U.S. oil has gained 7.3%.Brent September contract: $80.80 per barrel, down 3 cents, 0.41%. Year to date, the global benchmark is ahead 4.9%.RBOB Gasoline August contract: $2.44 per gallon, down 1 cent, or 0.46%. Year to date, gasoline is up 16.5%.Natural Gas August contract: $2.00 per thousand cubic feet, down 1 cents, or 0.1%. Year to date, gas is down 20%.Middle East tensions pushed oil prices higher in the spring, but the market's reaction to events in the region have been muted since then in the absence of an actual risk to oil supplies.
"Our market, in some ways sadly, is becoming immune to such atrocities and what might befall the region," John Evans, analyst at oil broker PVM, told clients in a note Monday.
Analysts have warned that a war between Israel and Hezbollah could lead to a direct confrontation with OPEC member Iran, which backs the militia group.
Oil prices have pulled back recently on worries about the health of China's economy.
