Crude oil futures traded higher on Monday morning following the escalation of tensions in West Asia.
At 9.55 am on Monday, October Brent oil futures were at $79.80, up by 0.18 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $77.10, up by 0.34 per cent.
August crude oil futures were trading at ₹6477 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹6444, up by 0.51 per cent, and September futures were trading at ₹6387 against the previous close of ₹6359, up by 0.44 per cent.
Ongoing tensions between Israel and Hamas escalated following an airstrike by Israel in Gaza. Reports said that the airstrike on a school-turned-shelter in Gaza killed at least 90 people. However, Israel said the death toll was inflated.
The recent escalation of tensions in West Asia has affected peace talks between Israel and Hamas. Media reports said Hamas is uncertain about its participation in the new ceasefire negotiations on Thursday.
Meanwhile, there are fears of an attack by Iran on Israel in the coming days. Quoting the Axios reporter Barak Ravid, a Reuters report said the Israeli intelligence community believes Iran has decided to attack Israel directly and may do so within days.
Ravid, who cited two sources, said the attack would be in retaliation for the killing of Hamas leader, Ismail Haniyeh, in Tehran in late July. However, Israel has neither claimed nor denied responsibility for this killing.
Market is also awaiting the release of consumer price index inflation data from major economies, including the US, during this week. The recent economic data from the US allayed fears of an inflation in that country. This helped boost the price of commodities such as crude oil.
August natural gas futures were trading at ₹185.60 on MCX during the initial hour of trading on Monday against the previous close of ₹180.50, up by 2.83 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August jeera contracts were trading at ₹27650 in the initial hour of trading on Monday against the previous close of ₹26730, up by 3.44 per cent.
August cottonseed oilcake futures were trading at ₹2916 on NCDEX in the initial hour of trading on Monday against the previous close of ₹2895, up by 0.73 per cent.