Oil prices rise after Israeli strikes on Rafah

Oil prices rose on Tuesday after Israel struck Rafah in Gaza. This is reported by UNN with reference to Reuters.

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Brent crude oil futures rose 9 cents, or 0.11%, to $83.42 per barrel, while West Texas Intermediate (WTI) futures rose 7 cents, or 0.09%, to $78.55 per barrel.

"Oil prices have risen this morning as some obstacles in the ceasefire talks between Israel and Hamas have led market participants to speculate that geopolitical tensions may persist for a long time," said IG market strategist Yeap Jun Rong.

He also added that market participants will be watching the upcoming publication of data on crude oil inventories in the United States. 

According to Reuters, the strengthening dollar has been holding back the growth of oil futures as it makes crude oil more expensive for traders holding other currencies.  The dollar index, which measures the US dollar  against six major peers, was last seen at 105.25.

On Monday, oil prices rose, partially recovering last week's decline. Both contracts suffered their most significant weekly losses in three months as the market focused on weak US employment data and the possible timing of the Federal Reserve's interest rate cut.

The Palestinian militant group Hamas on Monday agreed to a mediated ceasefire in Gaza, but Israel said the conditions did not meet its demands and continued strikes on Rafah, planning to continue negotiations on a deal.

Israel this morning established control over the Rafah crossing from Gaza on the border with Egypt.