Oil prices edge higher as Netanyahu says Israel will attack Rafah with or without hostage deal

• The U.S. is pushing for a Gaza ceasefire to head off an Israeli offensive against Rafah.
• Senior U.S. administration officials and Arab diplomats told NBC News that Israel has indicated it would accept a truce lasting more than six weeks.
• But Israeli Prime Minister Benjamin Netanyahu publicly doubled down on threats to move against the city.

Israeli Prime Minister Benjamin Netanyahu addresses the Conference of Presidents of Major American Jewish Organizations, amid the ongoing conflict between Israel and the Palestinian Islamist group Hamas, in Jerusalem, February 18, 2024.

Crude oil futures moved slightly higher Tuesday after Israeli Prime Minister Benjamin Netanyahu dismissed hopes that a proposed hostage deal would prevent an attack on the southern Gaza city of Rafah.

Here are today’s energy prices:

• West Texas Intermediate June contract: $82.90 a barrel, up 27 cents, or 0.33%. Year to date, U.S. crude oil is up about 16%.
• Brent June contract: $88.48 a barrel, up 8 cents, or 0.09%. Year to date, the global benchmark is up about 15%.
• RBOB Gasoline May contract: $2.75 a gallon, down 0.11%. Year to date, gasoline is up about 30%.
• Natural Gas June contract: $2.08 per thousand cubic feet, up $2.46%. Year to date, gas is down about 17%.

The U.S. is pushing for a ceasefire to head off an Israeli offensive against Rafah. Washington fears an invasion of the city will dramatically escalate the humanitarian crisis and regional tensions. But Netanyahu threatened to move against Rafah regardless of whether a hostage deal is reached.

“The idea that we will halt the war before achieving all of its goals is out of the question,” Netanyahu said Tuesday at a forum of hostage families. “We will enter Rafah and we will eliminate the Hamas battalions there – with or without a deal, in order to achieve the total victory.”

Israel has proposed the release of 33 hostages held in Gaza in exchange for a ceasefire and the release of Palestinian prisoners. Senior U.S. administration officials and Arab diplomats told NBC News that Israel has indicated for the first time that it would accept a truce lasting more than six weeks.

Oil prices fell more than 1% on Monday on hopes of a ceasefire that eases regional tensions.

A Hamas delegation discussed the proposal with Egyptian officials in Cairo on Monday. Israel is waiting for Hamas’ response before sending its negotiators to Egypt, an Israeli official told NBC News.