Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Oil prices jump amid Middle East conflict

Oil prices rose more than 4% in early Asia trade with analysts warning of more volatility due to the Israel-Hamas conflict in the Middle East.

Video poster image

Both Brent and US crude, or WTI, moved higher on Monday with prices already supported by supply concerns amid output cuts by Saudi Arabia. Meanwhile, the Baker Hughes total rig count fell further to 619 last Friday, while the number of oil rigs in operation fell by five to 497, a new 19-month low. IGTV’s Angela Barnes has this round-up.

Conflict in the Middle East

The recent conflict in the Middle East has impacted markets, including the price of oil Even though Israel and Palestine aren't big oil producers, their conflict has caused concerns because they are situated in an important oil-producing region. As a result, the price of oil has shot up by over $4 in early Asian trade after the attack on Israel.

The price of crude oil

In the United States, the price of crude oil has increased by 3.43 percent, currently trading at around $84 per barrel. Similarly, Brent crude oil has seen a rise of 3.25 percent, reaching approximately $86 per barrel. These prices are slightly lower than the recent peak of $90 per barrel observed in the past few weeks. Despite these fluctuations, the prices of crude oil remain high due to low global oil inventories and ongoing production cuts by Saudi Arabia.

The drop in oil prices

The drop in oil prices from their recent peak can be partly attributed to the reduction in the total number of oil rigs being used by Baker Hughes. Last week, the number of oil rigs in operation fell by 5 to 497, reaching a new 19-month low. This decrease in rig count indicates a slowdown in drilling activity, which could affect future oil production.

Production cuts by Saudi Arabia

It's important to note that while the conflict in the Middle East has had an impact on oil prices, other factors like global oil inventories and production cuts by Saudi Arabia have also played a significant role. The market's response to the conflict demonstrates how sensitive it is to geopolitical events in important oil-producing regions, highlighting the interconnectedness of global commodity markets.


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years
Find out more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.