Oil prices continued their upward momentum on Monday, with Brent crude approaching $80 per barrel, extending last week’s sharp rise—the steepest since early 2023.
The surge is driven by escalating concerns over a broader Middle East conflict and the potential disruption of exports from the region, which plays a critical role in global oil production.
By 1316 GMT, Brent crude futures had increased by $1.09, or 1.4 percent, to reach $79.14 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude climbed $1.15, or 1.55 percent,to $75.53 per barrel, having earlier spiked by over $2.
Last week, Brent surged over 8 percent, while WTI jumped 9.1 percent, as concerns grew that Israel might target Iranian oil infrastructure in response to an October 1 missile attack by Iran on Israeli territory.
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On Monday, tensions escalated further as Hezbollah, an Iranian-backed militant group, fired rockets into Haifa, Israel’s third-largest city.
Meanwhile, Israel appeared ready to increase ground operations into southern Lebanon, coinciding with the first anniversary of the Gaza war, which has already intensified conflict across the Middle East. The situation has raised concerns that the U.S., Israel’s primary ally, and Iran, its key adversary, could be drawn into a larger-scale war.
However, ANZ Research downplayed the likelihood of an immediate significant impact on global oil supplies.
“We see a direct strike on Iran’s oil facilities as one of the least likely responses by Israel,” the research group stated, noting that OPEC’s spare capacity of 7 million barrels per day could cushion any disruptions.
The Organisation of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC+, are expected to begin increasing production in December, following a series of cuts in recent years aimed at propping up prices amid sluggish global demand.
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