Crude Oil Prices Rise on Israel-Qatar Tensions and US Sanctions on Russia

Oil prices rose in Asian trading on Wednesday after Israel carried out airstrikes in Qatar targeting Hamas, raising concerns about instability in the Middle East. 

Brent crude for October delivery gained 0.7% to $66.92 a barrel, while West Texas Intermediate climbed 0.7% to $62.72 a barrel. Both were on track for a fourth straight day of gains, supported by OPEC+’s smaller-than-expected supply increase.

Israel’s Strike on Qatar

Israel confirmed an attack on Hamas leaders in Doha late Tuesday, sparking criticism from Qatar and the U.S., as it could derail peace talks. Oil initially jumped by 2% but trimmed gains after U.S. officials said no further strikes were planned. Hamas reported 5 casualties and said Israel failed in its assassination attempt. The attack leaves the future of peace negotiations uncertain.

US Sanctions on Russia

Alongside Middle East tensions, oil prices were supported by expectations of tougher U.S. sanctions on Russian oil. Reports suggested that President Donald Trump is pushing the EU to enforce stricter tariffs and is considering 100% tariffs on India and China, key Russian oil buyers. While both countries have resisted pressure so far, such actions could restrict supplies and impact global markets.

Also Read: Best Oil and Gas Stocks in India in August 2025!

US Oil Inventories

Adding to the market outlook, data from the American Petroleum Institute showed that U.S. crude inventories increased by 1.25 million barrels in the week ending September 5.

Conclusion

Oil markets remain volatile as geopolitical risks from the Middle East and potential U.S. sanctions on Russian oil drive prices higher. Any escalation in Israel-Hamas tensions or U.S. trade actions could further tighten supply and keep oil prices on the rise.

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