WTI Crude Oil 7% Higher

Crude oil traded near $100 per barrel on Wednesday after sliding for two straight sessions, as markets monitored election results in Israel that could change the trajectory of the Middle East conflict. Exit polls indicated that opposition leader Gadi Eisenkot held a narrow lead over Prime Minister Benjamin Netanyahu, although neither bloc secured a majority and vote counting was still underway. The results point to weakening support for Netanyahu, a dominant figure in Israeli politics for decades who has guided the country through nearly three years of continuous conflict. Meanwhile, markets assessed renewed diplomatic efforts in the region after officials from Saudi Arabia, Pakistan, and Turkey met with Iranian leaders on Monday. Iran’s Supreme Leader Mojtaba Khamenei also called for an end to the current state of “neither war nor peace.” In the US, crude inventories dropped by 2 million barrels in the week ending October 23, signaling tighter oil supplies.

Crude oil fell toward $100 a barrel on Tuesday, as renewed diplomatic efforts raised hopes of  de-escalating tensions in the Middle East. Iran’s Supreme Leader Mojtaba Khamenei called for an end to the current state of “neither war nor peace,” signaling a possible opening for negotiations. Officials from Saudi Arabia, Pakistan, and Turkey met in Tehran on Monday and agreed to continue discussions, while Russian President Vladimir Putin was expected to meet Iranian President Masoud Pezeshkian and Qatar’s emir in Moscow. These developments improved prospects for de-escalation, although significant risks remain. Meanwhile, US crude inventories fell by 2.031 million barrels in the week ended October 23rd, defying expectations for an increase of 800,000 barrels and extending the previous week’s 4.93 million-barrel draw, adding to supply concerns. Houthi attacks on Saudi energy infrastructure and Iranian strikes on tankers in the Strait of Hormuz continued to support prices.

Crude oil fell toward $100 a barrel on Tuesday, following a 1.5% loss on Monday, as renewed diplomatic efforts raised hopes of ending the US-Iran war and easing pressure on energy markets. Iran’s Supreme Leader Mojtaba Khamenei called for an end to the current state of “neither war nor peace,” signaling a possible opening for negotiations. Officials from Saudi Arabia, Pakistan and Turkey met in Tehran on Monday and agreed to continue discussions, while Russian President Vladimir Putin was expected to meet Iran’s President Masoud Pezeshkian and Qatar’s emir in Moscow. These developments improved prospects for de-escalation, although significant risks remain. A Saudi-led coalition reported intercepting drones and ballistic missiles launched by Iran-backed Houthi rebels, while Hezbollah was reportedly preparing for renewed conflict in Lebanon. Investors are also monitoring upcoming elections, including in Israel, for potential implications for regional stability and oil supply.