FALCON POWERS – Oil prices continued their strong gains on Monday, following their largest weekly rise in over a year on Friday amid escalating risks of a regional war in the Middle East.
Brent crude futures rose by 94 cents, or 1.2%, to $78.98 per barrel by 09:15 GMT.
West Texas Intermediate (WTI) crude futures also increased by $1.09, or 1.51%, to $75.51 per barrel. Brent had surged over 8% last week, marking its largest weekly increase since January 2023, while WTI rose by 9.1%, the biggest weekly gain since March 2023.
Independent market analyst Tina Teng stated, “The pullback may have come from profit-taking after last week’s price rise.”
She added, “However, the oil market is likely to remain under pressure that causes prices to rise due to fears of an Israeli response to Iran. Geopolitical tensions are now playing a key role in determining market direction.”
Israel targeted Hezbollah positions in Lebanon and Gaza on Sunday, just before the anniversary of the October 7 attacks. Israeli Defense Minister stated that all options are on the table in response to Iran.
This came after Iran launched a missile attack on Israel in retaliation for Israeli operations in Lebanon and Gaza.
Meanwhile, Israeli police reported early Monday that rockets fired by Hezbollah struck Haifa, the third-largest city in Israel.
