Oil Leaps as Big Fed Cut Bets Gain, Lebanon Blasts Stir Tensions
- Trend-following crude traders close to maximum bearish levels
- Market still watching disruption of Gulf of Mexico production
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Oil rose as expectations increased that the Federal Reserve will be more aggressive with its interest rate cuts and a series of deadly blasts in Lebanon reignited geopolitical tensions.
West Texas Intermediate jumped more than 1.5% to settle above $71 a barrel. Markets are implying a roughly 55% chance that the Fed opts for a steeper 50-basis-point rate cut on Wednesday, which could help stimulate energy demand. Crude extended its gains after Iran-backed Hezbollah accused Israel of orchestrating an attack that killed several people and left more than 2,700 wounded across Lebanon, increasing fears of an all-out war.