Oct 10 , V7N- Oil prices rose in early Asian trade on Thursday due to concerns over potential supply disruptions in the Middle East, as Israel planned a strike on oil-producer Iran. Additionally, fuel demand spiked as Hurricane Milton hit Florida, leading to a 0.5% increase in both Brent crude and U.S. West Texas Intermediate (WTI) futures. With about a quarter of Florida's fuel stations selling out due to storm-driven demand, crude prices found further support.

Tensions between Israel and Iran also fueled price increases, as Israeli Defense Minister Yoav Gallant warned of a possible "lethal, precise, and surprising" strike. U.S. President Joe Biden discussed Israel's plans in a 30-minute call with Prime Minister Benjamin Netanyahu, further heightening concerns over regional stability and its impact on oil production.

Despite these geopolitical risks, the overall demand outlook remains weak. The U.S. Energy Information Administration (EIA) downgraded its 2025 demand forecast, citing slower economic activity in China and North America. Additionally, U.S. crude inventories rose by 5.8 million barrels last week, a larger-than-expected build, though lower than estimates from the American Petroleum Institute.

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