Oil prices gain ahead of Biden's visit to Israel

Oil prices edged higher on Tuesday ahead of a trip by US President Joe Biden to the Middle East that is likely to involve balancing support for Israel with trying to prevent any regional escalation of its war with Hamas.

Following a drop of more than a dollar on Monday, Brent futures rose $0.74 to $90.39 a barrel. US West Texas Intermediate (WTI) crude rose $0.69 to $87.35.

Fears the Middle East conflict could widen drove big gains in both oil benchmarks last week. Global benchmark Brent gained 7.5% in its largest weekly gain since February.


Biden's visit to Israel on Wednesday will seek to balance showing support for Israel's war on Hamas and trying to rally Arab states to help prevent a regional conflict, after OPEC-member Iran pledged "pre-emptive action". "Oil prices are wavering as energy traders await to see if the US diplomatic efforts will be successful in preventing the Israel-Hamas conflict from turning into a wider regional war," said Edward Moya, senior market analyst at OANDA.