Oil Rises As Killing Of Hamas Leader Stokes Geopolitical Risk

(Bloomberg) -- Oil rose for the first time in four sessions after Hamas said Israel killed its political leader and an industry report pointed to a fifth week of drawdowns in US stockpiles.

Brent for October traded near $79 a barrel after tumbling by 4.1% over the prior three days, with West Texas Intermediate around $76. Hamas said Israel killed Ismail Haniyeh in an airstrike in Iran. Separately, the American Petroleum Institute said crude inventories fell by 4.5 million barrels last week. If confirmed by official figures later on Wednesday, it would mark the longest steak of declines since January 2022.

Israel earlier said it killed a senior Hezbollah commander with an airstrike on Beirut in response to an attack in the Golan Heights that left 12 young people dead over the weekend.

Crude is set for its largest monthly drop this year, weighed down by a poor demand outlook in China, the biggest importer. Futures are still modestly higher this year on the back of OPEC+ supply curbs and expectations the Federal Reserve will start lowering interest rates soon.

The central bank is widely expected to keep rates on hold when it meets later Wednesday, and traders will look to Chair Jerome Powell’s remarks after for confirmation of bets that they will be cut in September. 

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