Oil prices rise on fragile Mideast peace hopes

LONDON: Oil prices rose on Wednesday, edging closer to USD100 a barrel while stocks fell as further attacks between the United States and Iran dented hopes of an imminent peace deal. During the day in Asia trading, oil prices jumped more than two percent on Wednesday as Middle East peace talks stuttered. “Oil prices continue to make headway after the overnight strikes on Kuwait, and once more it is hitting most markets save for technology, ” said IG chief market analyst Chris Beauchamp. READ MORE: Oil extends gains as Middle East hostilities flare He said the situation was shifting from a delicate ceasefire towards something more like a low-intensity conflict. “This simply leaves the vital issue of oil supplies unresolved, and the clock continues to tick down towards doomsday for oil inventories and the global economy, ” Beauchamp added. The war has hit economic growth prospects worldwide, with a more severe shock likely should no effective ceasefire be agreed before 2027, the OECD warned Wednesday. Global economic growth is forecast to slip to 2. 8 percent this year even if Gulf energy exports return to pre-conflict levels in the third quarter, the group of 38 industrialised countries said in its quarterly update. “The longer the disruptions last, the larger the economic and social costs become, ” said OECD chief economist Stefano Scarpetta. Many countries would risk falling into recession, he noted, and a drop in investment spending — “including in energy-intensive AI” — would likely push up unemployment.

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