Oil Prices Surge Amid Fears of Widening Middle East Conflict
Oil prices surged by over 3% on Monday, marking a fifth consecutive day of increases. The global benchmark Brent crude settled at $82.30 per barrel, up $2.64, or 3.3%, while U.S. West Texas Intermediate crude reached $80.06 per barrel, climbing $3.22, or 4.2%. Brent experienced its largest percentage gain for a single trading session this year.
The spike in oil prices is driven by concerns over a potential expansion of conflict in the Middle East, which could disrupt global crude oil supplies. The U.S. Defense Department’s announcement of sending a guided missile submarine to the region adds to these fears. The submarine deployment comes as tensions rise with potential threats to Israel from Iran and its allies.
Bob Yawger, director of energy futures at Mizuho in New York, noted, “We’re piling assets one on top of the other and giving the impression that, if this turns hot, it could also turn ugly.”
Iran and Hezbollah have pledged retaliation for the recent assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr. This potential for a broader conflict heightens concerns about further disruptions to oil supply, contributing to the rise in prices.
