Israel's Prime Minister convenes war cabinet amid escalating tensions

Oil prices experienced a boost on Tuesday following positive economic data from China and escalating tensions in the Middle East. Brent futures for June delivery increased by 0.2 percent to $90.30 a barrel, while US crude futures for May delivery rose by 0.3 percent to $85.62 a barrel.

The surge in oil prices was triggered by China's first-quarter GDP growth of 5.3 percent, surpassing analysts' expectations. However, concerns arose as other Chinese indicators such as real estate investment, retail sales, and industrial output indicated weak demand amidst a lingering property crisis.

Despite reaching their highest levels since October last week, oil prices dipped on Monday after Iran's missile and drone attack on Israel proved less damaging than feared, alleviating worries of a rapid escalation in conflict that could disrupt crude oil supply.

Analysts at ANZ Research highlighted that Israel's response to Iran's attack will determine the course of the conflict, which could potentially involve the US. Iran, a key OPEC member, produces over 3 million barrels of crude oil per day.

In response to the attack, Israel's Prime Minister convened his war cabinet to strategize on how to address Iran's unprecedented direct assault on the country.