Oil Prices Rise for Second Day Amid Fears of Middle East Conflict Impacting Supply

Oil prices surged for the second straight session on Monday as tensions in the Middle East escalated, raising concerns over potential disruptions to supply. Brent crude futures for November delivery increased by $1.12, or 1.56%, to $73.10 per barrel, while US West Texas Intermediate crude advanced by 93 cents, reaching $69.11 per barrel.

The recent surge follows Israel’s intensified strikes on Iranian-backed groups such as Hezbollah and Houthi militias in response to attacks by Hamas. The growing conflict, particularly involving Iran, a key OPEC member, has heightened fears of a broader regional conflict that could impact oil supplies.

Market analysts noted that while supply concerns dominate, fears of slowing demand, especially from China’s struggling economy, remain significant. Despite fiscal stimulus measures in China, manufacturing data has shown a fifth consecutive month of contraction, casting doubt on future fuel demand.