Middle East Tensions Escalating, Disrupting Crude Oil Supply

Before the holiday, the sentiment in crude oil market was relatively weak, mainly influenced by the expectation of weak demand and return of oil supply. From the current situation, OPEC+ is still planning to increase production starting in December. However, as the geopolitical tensions in the Middle East continue to escalate, the market expects it to impact crude oil price.

On the night of October 1, Iran launched multiple missiles from its territory towards Israel and warned that if Israel retaliated against what it deemed legitimate defense actions, it would face devastating consequences. Israeli Defense Forces spokesman stated that Iran conducted a serious action on October 1 and pushed the situation in the Middle East toward escalation.