Global unrest, weak demand cap oil price gains

SINGAPORE: Oil prices showed little movement on Tuesday as traders weighed intensifying conflicts in the Middle East and Ukraine against global efforts to restrict Russian energy supplies.

Brent crude futures stood at $66.56 a barrel by 0041 GMT, almost unchanged from the previous session. US West Texas Intermediate (WTI) crude inched up just 2 cents to $62.29 a barrel.

Geopolitical tensions fuel uncertainty

The market’s muted response came despite deepening turmoil in Gaza, where Israel’s ground offensive has forced two hospitals out of service, according to Gaza’s health ministry. Tanks pushed deeper into the territory, while continued airstrikes caused further destruction.

The violence has reignited diplomatic activity. On Monday, dozens of world leaders gathered at the United Nations to endorse a Palestinian state, a move that marks a significant shift in global sentiment nearly two years into the war. Israel and the United States remain firmly opposed.

At the same time, NATO allies accused Russia of violating air space in Estonia and Poland. Britain warned such actions risked sparking an armed conflict, highlighting the fragile security situation in Europe. Russia’s defence ministry also claimed its forces had seized control of Kalynivske, a settlement in Ukraine’s Dnipropetrovsk region.

Russia and energy markets under pressure

Energy infrastructure has become a growing target in the Ukraine conflict. Kyiv has stepped up drone strikes on Russian refineries and export terminals, raising concerns about supply disruptions.