• Oil advanced for a second day on tensions in the Middle East, with Israel rejecting a cease-fire proposal for the Gaza Strip, and a risk-on mood that helped lift wider financial markets.
  • Global benchmark Brent rose toward $84 a barrel after a 0.5% gain on Monday, while West Texas Intermediate was near $79. Israel’s war cabinet rejected a cease-fire proposal agreed to by Hamas. The Jewish state has vowed to continue military operations in Rafah, a major Gazan city.
  • Crude’s advance came after US stocks pushed higher on Monday on optimism the Federal Reserve will start cutting interest rates this year. Lower US borrowing costs should be a plus for the nation’s energy demand.
  • Oil is clawing back some ground after posting its words weekly drop since February. Prices remain higher year-to-date as OPEC+ production cuts have tightened the market. While the cartel is expected to keep supplies tight, the demand outlook is clouded, with diesel flashing signs of weakness.