BEIJING: In the early Asian trade on Monday, oil prices experienced a substantial surge of over $4 per barrel. This surge was attributed to the intensifying political uncertainty caused by dramatic military confrontations between Israeli and Hamas forces during the preceding weekend across the Middle East.
Investors reacted swiftly, driving Brent crude up by $4.18, or 4.94%, to $88.76 a barrel, while U.S. West Texas Intermediate crude rose $4.23, or 5.11%, reaching $87.02 a barrel.
The surge in oil prices came as a reversal of last week’s downward trend, which marked the largest weekly decline since March. Brent had fallen about 11%, and WTI had retreated more than 8% amid concerns about high-interest rates and their potential impact on global demand.
Analysts are closely monitoring the situation, as escalating tensions in the Middle East often lead to supply disruptions, impacting the global energy market. The geopolitical instability in the region adds further uncertainty to an already volatile oil market, leaving both investors and consumers on edge.”
