Oil prices rise as Israel retaliates against Hezbollah, US inventories shrink

Source Investing

Investing.com-- Oil prices rose in Asian trade on Wednesday, recovering a measure of recent losses as Israeli strikes against the Hezbollah group, in retaliation for a weekend attack, saw traders price in a bigger risk premium into crude. 

Prices rose from nearly two-month lows as industry data also showed U.S. inventories marking a fifth straight week of strong draws- indicating tight market conditions in the world’s biggest fuel consumer. 

Still, oil’s recovery remained fragile amid persistent concerns over slowing demand in top oil importer China. 

Caution before a Federal Reserve interest rate decision and a meeting of the Organization of Petroleum Exporting Countries also kept markets on edge. 

Brent oil futures expiring in September rose 0.5% to $79.02 a barrel, while West Texas Intermediate crude futures rose 0.7% to $75.24 a barrel by 21:07 ET (01:07 GMT). 

Israel strikes Beirut, M.East tensions rise 

Fears of an all-out war in the Middle East rose after Israel carried out air strikes in Beirut on Tuesday. The strikes were in retaliation for a rocket strike on Israel-occupied Golan Heights over the weekend.

Israel claimed that it had killed a major Hezbollah commander in Tuesday’s attack, ramping up concerns over an escalation of tensions in the region.

This saw traders attach a slightly bigger risk premium to oil prices, although it still remained unclear whether a greater conflict would break out in the Middle East. Tensions between Iran and Israel had also largely petered out despite strikes by both sides.

U.S. and UN efforts to broker a ceasefire between Israel and Hamas- which is at the heart of the conflict- have so far yielded few results. 

US inventories shrink for fifth straight week- API

Data from the American Petroleum Institute showed on Tuesday that U.S. inventories saw a draw of nearly 4.5 million barrels in the week to July 26. The reading marked a fifth straight week of draws in U.S. inventories, as fuel demand remained underpinned by the travel-heavy summer season.

But part of the outsized draws were also driven by supply disruptions due to a recent hurricane in the Gulf of Mexico. 

Still, the API data heralds a similar trend from official inventory data, which is due later in the day.

OPEC meeting on tap

Markets were also cautious before a meeting of the Joint Ministerial Monitoring Committee of the OPEC on Thursday.

But media reports say the meeting is unlikely to result in any major changes to production, despite recent weakness in oil prices. 

Still, top producers Russia and Saudi Arabia are likely to further downplay any plans to begin scaling back their production cuts this year- which could offer oil with some support. 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hikeA Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
Author  Irene Q.
Oct 22, Thu
A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 26, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
Author  Mitrade
Oct 26, Mon
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
Oct 26, Mon
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Tesla jumps 5% as Barclays puts a $450 target on the SpaceX merger — the chart was already pointing to 431Tesla closed at $391.62 on October 26, up 5.21%, after Barclays upgraded the stock to Overweight and lifted its target to $450 from $370, citing a sharp inflection in Robotaxi miles and a potential SpaceX merger. The move also completed a double bottom at $345.88 and $349.33, with a neckline at $388.56 and a measured target of $431.24. Here is what the upgrade actually says, why the chart and the analyst now point the same way, and what would break the target.
Author  Irene Q.
20 hours ago
Tesla closed at $391.62 on October 26, up 5.21%, after Barclays upgraded the stock to Overweight and lifted its target to $450 from $370, citing a sharp inflection in Robotaxi miles and a potential SpaceX merger. The move also completed a double bottom at $345.88 and $349.33, with a neckline at $388.56 and a measured target of $431.24. Here is what the upgrade actually says, why the chart and the analyst now point the same way, and what would break the target.
placeholder
Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
Author  TradingKey
15 hours ago
The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
goTop
quote