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Oil prices increased during the Asian trading session as investors reacted to escalating geopolitical risks in the Middle East. Reports indicate that the Pentagon has instructed US Central Command to prepare for potential military operations against Iran, although no final decision has been made. This development comes as President Donald Trump expressed reluctance towards negotiating a deal with Iran, further heightening tensions in the region.
In addition to US military preparations, shipping risks in the Gulf have intensified. A tanker located approximately 51 nautical miles north of Madinat ash Shamal in Qatar was reportedly struck by multiple projectiles, resulting in casualties. Meanwhile, Yemen's Houthi movement claimed responsibility for a ballistic missile attack on King Khalid International Airport in Riyadh, Saudi Arabia, although the Saudi government has not confirmed this latest incident.
Concerns over oil supply have also emerged in the United States, where Chevron and Shell have begun shutting down production at several Gulf of Mexico facilities in anticipation of Tropical Storm Isaias. These combined factors have contributed to a rise in oil prices as the market reacts to the potential for increased volatility in the region.
Source: KLEA News