Oil prices jump by more than 3%, but the war in Israel has nothing to do with it

Oil prices are rallying, jumping nearly 4% as of this writing.
While everyone observes the uncertain scenario of the war in Israel, however, this is not the reason that triggered this new flare-up in crude oil.
The focus returned to the conflict in Ukraine and its effects.
The United States has tightened its sanctions program against Russian crude exports, raising supply concerns in an already tight market, while global inventories are expected to decline in the fourth quarter.
At around 12.55pm on October 13, Brent futures advanced by 3.42% to 88.92 dollars per barrel and WTI increased by 3.58% to 85.88 dollars per barrel.
Despite last-day fluctuations in both benchmarks, Brent was forecast for a weekly gain of nearly 4%, while WTI was set to rise more than 2.5% for the week, after both contracts rose Monday.
The rise was driven by the risk of disruptions to Middle Eastern exports after the attack by the Palestinian militant group Hamas on Israel over the weekend threatened a possible wider conflict.
Now, however, the jump in crude oil has been driven by new US sanctions in the context of the war in Ukraine.
Why the US is pushing up crude oil prices Oil prices rose as much as 4% after the United States tightened sanctions on Russian crude exports, exacerbating supply concerns in an already tightly balanced energy market.
In detail, the US has imposed the first sanctions on the owners of tankers transporting Russian oil at a price higher than the price limit set by the G7 of 60 dollars a barrel, to fill the gaps in the mechanism designed to punish Moscow for its invasion of 'Ukraine.
read also Will there really be an oil rally with the war in Israel? It's not 1973, experts say Russia is the world's second-largest oil producer and a major exporter, and tighter U.S.
control over its shipments could reduce supply.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) maintained its forecast for global oil demand growth, citing signs of a resilient world economy so far this year and predicting further demand boosts in China, the largest world's oil importer.
Fears of a supply restriction in the face of growing consumption is pushing oil prices.
Kelvin Wong, senior market analyst at OANDA in Singapore, said the geopolitical risk premium is still around the corner and will likely support oil prices in the near term.
The market is most concerned about supply constraints from the Middle East and Russia.
Rising crude prices are putting pressure on inflation, threatening a rise that could force central banks to make further interest rate increases.

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