Oil prices rose for the fifth straight session on Monday, extending last week’s gains of more than 3%, as easing U.S. recession fears and escalating geopolitical tensions in the Middle East continued to bolster prices. By 0458 GMT, Brent crude futures edged up by 22 cents, or 0.3%, reaching $79.88 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 36 cents, or 0.5%, to $77.20 per barrel.
The rally in oil prices is being supported by stronger-than-expected U.S. economic data, which has alleviated concerns over a potential recession, according to IG markets analyst Tony Sycamore.
Heightened geopolitical risks in the Middle East, particularly the possibility of retaliation by Iran and Hezbollah for the recent assassinations of key leaders from Hamas and Hezbollah, have also added further upward pressure on prices.
“The market is still waiting for Iran’s response,” noted Warren Patterson, head of commodities research at ING, emphasizing the uncertainty surrounding potential retaliatory actions. The situation in the region remains tense, with Israel’s incursion into Gaza intensifying on Saturday, including an airstrike on a school compound that reportedly resulted in at least 90 casualties, according to the Gaza Civil Emergency Service, though Israeli authorities have disputed the accuracy of the death toll.
As the geopolitical landscape continues to evolve, market participants are closely monitoring developments that could further impact global oil prices.
