Oil Prices Jump on Middle East Tensions and Large US Inventory Drawdowns

Oil prices rose sharply as Israel-Hamas tensions appeared to stall US diplomatic efforts, while data showed larger-than-expected US inventory drawdowns.

Hopes faded for a swift de-escalation in the Middle East after a deadly Gaza hospital blast, raising concerns about potential disruptions to regional oil supplies.

Stronger-than-expected China GDP data offered some support to oil markets, as Beijing's stimulus appeared to be working.

API data showed a larger-than-expected 4.4 million barrel decline in US crude stocks last week.

Upbeat US retail sales and industrial production data pointed to steady fuel demand despite tighter supplies.