Crude oil prices spiked 4% on Middle East concerns.
Analysts have noted that the elevated oil prices resulting from the conflict might contribute to inflation, potentially prompting rate hikes that could weaken demand.
Crude oil prices continued to surge 4% on Monday, 9 October 2023 on concerns over the political instability in the Middle East after Israel declared war against Hamas over the weekend. Although both nations are not major oil producers, an escalation in the conflict might spread to neighbouring countries, such as Iran.
Analysts have noted that the elevated oil prices resulting from the conflict might contribute to inflation, potentially prompting rate hikes that could weaken demand.
Last week, Brent experienced a drop of 11%, while WTI declined by over 8%, marking the most significant weekly decrease since March. This decline was spurred by a worsening macroeconomic outlook, heightening worries about global demand.
Brent crude settled $3.57, or 4.2%, higher at $88.15 a barrel.
WTI closed at $86.38/barrel, up by $3.59 or 4.3%