Gaza Conflict Intensifies as Hamas Rejects Ceasefire

Crude oil prices experienced a significant rise, surpassing 1% on Tuesday. This surge comes as hopes for a peaceful resolution to the Israel-Hamas conflict in Gaza were dashed. Hamas has outright rejected Israel's ceasefire proposal, stating their readiness to release all hostages under the condition that Israel ends the war and withdraws its troops from Gaza. In response, Israeli Prime Minister Benjamin Netanyahu has firmly stated that Israel will not yield to Hamas's demands.

OPEC+ Reports Production Decline

Further influencing the oil market, OPEC+ announced a decrease in its March production by 37,000 barrels per day (bpd), bringing the total to 41.02 million bpd. Concurrently, OPEC has adjusted its global oil demand growth forecast for 2025 downwards, signaling potential challenges ahead for the oil industry.

Market Reaction

The immediate market reaction saw West Texas Intermediate (WTI) for June's settlements increase by 1.38% to $63.27 per barrel, while Brent crude for June's deliveries climbed by 1.21% to $67.05 per barrel.