Brent crude tops $80/barrel as Middle East conflict stirs investor anxiety
Despite the bullish trend, market sentiment remains fragile. Analysts warn that oil prices could sharply reverse by $5-7/barrel if Israel avoids directly targeting Iranian oil infrastructure, which would ease supply concerns.
Oil prices surged on Monday, with Brent crude breaking the $80/barrel mark for the first time since August, closing 3% higher amid escalating tensions in the Middle East. The market's rally, driven by fear of potential disruptions to global oil supplies, reflects growing uncertainty rather than confidence in fundamentals.
Brent crude rose by 3.7%, settling at $80.93/barrel.
WTI also climbed by 3.7%, closing at $77.14/barrel.
The sharp rise came in response to the intensifying conflict, particularly after Iran-backed Hezbollah launched rockets at Haifa, Israel’s third-largest city. This escalation signals the potential for a broader regional conflict, raising concerns about impacts on Iran's oil production and regional supply chains.
Despite the bullish trend, market sentiment remains fragile. Analysts warn that oil prices could sharply reverse by $5-7/barrel if Israel avoids directly targeting Iranian oil infrastructure, which would ease supply concerns. The market's current exuberance appears speculative, and the lack of clarity on how the conflict will unfold keeps volatility high.
Written by: Muhammad Hafiz