While oil prices rose on Tuesday as the Chinese economy grew faster than expected, rising tensions in the Middle East after Israel announced that it would respond to Iran’s weekend attack also kept the markets tense and supported the prices.
Brent futures for June delivery were up 48 cents, or 0.5%, at $90.58 a barrel by 04:37 GMT. WTI crude oil futures for May delivery rose 49 cents, or 0.6%, to $85.90 a barrel.
The indicators rose due to strong economic growth in China, the world’s largest oil importer. Official gross domestic product grew 5.3% year-on-year in the first quarter, beating analysts’ expectations, government data showed.
While growth was seen as a positive sign for policymakers trying to boost confidence, a range of other indicators, including property investment, retail sales, and industrial production, showed demand remained weak in the face of a protracted property crisis.
Oil prices had risen to their highest level since October last week after the Iranian government vowed to retaliate, but fell on Monday as what the Iranian government described as retaliatory attacks caused only minor damage.
Israel’s response will determine whether the escalation will end or continue. With the possible intervention of the USA, the conflict between Israel, Iran, and their proxies can be hold under control.
Netanyahu convened his war cabinet for the second time in less than 24 hours on Monday to consider how to respond to Iran’s first direct attack on Israel.
Iran produces more than 3 million barrels of crude oil per day as a major producer in the Organization of Petroleum Exporting Countries (OPEC).
