Oil prices increased for the second consecutive session on Monday due to rising concerns over potential supply disruptions in the Middle East, particularly following Israel’s intensified attacks on Hamas and Iranian-backed forces.
Despite Friday’s price increases, both Brent and WTI experienced weekly declines of approximately 3% and 5%, respectively, amid concerns about demand in China, even with fiscal stimulus efforts in the country.
The price hikes on Monday were largely attributed to fears that a wider Middle East conflict could disrupt supplies from key oil-producing regions, especially involving Iran. Recent strikes have reportedly led to casualties among Palestinian militant leaders, escalating tensions in the region.
Analysts highlight that while excessive supplies remain a concern for oil markets, the geopolitical situation could significantly impact supply dynamics. Market participants are also monitoring upcoming decisions by OPEC+ regarding supply cuts and watching for potential insights from Federal Reserve Chair Jerome Powell regarding monetary policy that could affect economic recovery and oil demand.
