Geopolitical risks are impacting oil markets Tuesday, after the downing of a Russian fighter jet by Turkey, and amid fears that conflicts in the Middle East could escalate in coming hours and days.
West Texas Intermediate jumped more than 3% in Tuesday midday trading- rising $1.26 to $43.01/bbl. The U.S. benchmark is poised for its largest one-day gain in three weeks.
Brent was up $1.43, or 3.2%, at $46.26 a barrel, after hitting a two-week high at $46.50.
Russian President Vladimir Putin characterized Turkey’s shooting of its jet as a “stab in the back” that could produce “serious consequences.” In recent weeks, tensions in the Middle East have flared as Russia conducts air raids over Syria in retaliation for the downing of a Russian passenger jet over Egypt in October. France and the U.S. have also stepped up activity in the region following ISIS-coordinated attacks in Paris earlier this month.