Oil prices went up on Monday because of concerns about possible supply issues from Middle East producers, following Israel’s increased attacks on Iranian-backed groups.
Brent crude for November rose by 51 cents (0.71%) to $72.49 a barrel, with the December contract gaining 50 cents (0.7%) to $72.04. U.S. West Texas Intermediate (WTI) crude went up 43 cents (0.63%) to $68.61 a barrel.
Last week, oil prices dropped due to worries about demand, especially after China’s economic support measures didn’t boost market confidence.
However, prices on Monday were supported by fears of a larger conflict in the Middle East, which could reduce oil supplies from key producers like Iran. Israel has been targeting Iranian-backed groups, including bombing Houthi targets in Yemen and killing a Hezbollah leader in Lebanon.
The U.S. has also increased its military presence in the region in case Iran or its allies threaten U.S. interests.
Analysts believe oil prices will continue to be influenced by supply and demand factors. There’s also uncertainty about whether China’s recent policies will boost fuel demand, given its shift towards cleaner energy sources.
Markets are waiting for comments from U.S. Federal Reserve Chair Jerome Powell later on Monday about the central bank’s monetary policy.
