Brent crude increased to over USD 74 a barrel on Tuesday, following a 0.8% drop on Monday, while West Texas Intermediate was close to USD 71.

Oil prices rose after Israel carried out airstrikes on Lebanon, resulting in nearly 500 casualties and escalating tensions in the region. At the same time, Chinese authorities were set to hold a briefing, raising expectations for additional stimulus.

Israel targeted various locations in southern Lebanon in the most fatal day of attacks since the 2006 war with Hezbollah. Iran, a group supporter, had previously expressed readiness to reduce tensions.

China’s three top financial regulators held a rare briefing on Tuesday morning, sparking speculation that Beijing might be planning a significant stimulus, including potential interest rate reductions by the Central Bank of China.

The decrease in demand from the world’s largest oil importer has significantly impacted oil prices in recent months.

Crude oil is on course for a second consecutive quarterly decline due to concerns about Chinese consumption and the potential for increased supplies from the Organisation of the Petroleum Exporting Countries Plus (OPEC+), contributing to the decrease in prices.

Despite this, a few US Fed officials indicated the potential for additional substantial rate cuts, which could help boost overall energy demand.

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