Brent tops $80 per barrel as oil analyst flags ‘phase of deterioration’ in the Middle East

Brent futures topped the $80-per-barrel-threshold on Wednesday, as Iran's claim that Hamas political leader Ismail Haniyeh was assassinated reignited tensions in the Middle East.

The Ice Brent contract with September expiry were trading at $80.32 per barrel at 09:45 a.m. London time, up by 2.15% from the Tuesday close price. Front-month September Nymex WTI futures were at $76.55 per barrel, higher by 2.44% from the previous day's settlement.

Oil gained ground amid exacerbated hostilities in the oil-rich Middle East region, where Israel has been fighting Iran-backed Palestinian militant group Hamas since the latter's terror attack in October. The Jewish state's decision to carry out a retaliatory campaign in the Gaza Strip has since broadened the conflict, with Israel trading fire with other Iran-supported factions, such as Lebanon's Hezbollah and Yemen's Houthi.

On Wednesday, Iran's paramilitary Revolutionary Guard accused Israel of assassinating Hamas political bureau chief Ismail Haniyeh at his residence in Tehran. Iran's supreme leader, Ayatollah Ali Khamenei said it is Iran's duty to punish Israel for this action, according to a Google-translated report from the state-run Islamic Republic News Agency.

CNBC has reached out for comment to the Israeli Ministry of Foreign Affairs and Prime Minister's Office.

Oil markets have so far absorbed the shocks of inching escalations in the Middle East, which were intermittently exacerbated by trade disruptions caused by Yemeni maritime attacks and by episodes of direct hostilities between Israel and Iran or Hezbollah. 

Clay Seigle, director of the global oil service at Rapidan Energy Group, told CNBC's Emily Tan that oil traders have been "mispricing" the geopolitical risks in the