Oil prices extend gains on Middle East escalation fears

Oil prices continued to climb on August 7, extending strong gains from the previous trading session as investors reacted to concerns over a potential escalation of tensions in the Middle East.

As of 09:10 Baku time, Brent crude futures for October delivery were trading at $83.73 per barrel on the ICE Futures exchange in London, up $1.24, or 1.5%, from the previous close. On August 6, Brent prices surged $3.04, or 3.83%, to settle at $82.49 per barrel, Russian media reports.

Meanwhile, U.S. West Texas Intermediate (WTI) crude futures for September delivery rose $0.95, or 1.23%, to $78.24 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX).

WTI had gained $2.07, or 2.75%, to close at $77.29 per barrel in the previous session.

The latest price increases reflect growing market concerns that renewed instability in the Middle East could disrupt global oil supplies.

By Sabina Mammadli