Oil prices rose on Monday, 30th Sep, due to growing concerns over potential supply disruptions from Middle Eastern producers amid escalating tensions between Israel and Iranian-backed forces. Brent crude futures for November delivery increased by 51 cents to $72.49 per barrel, while the more-active December contract gained 50 cents to $72.04. US West Texas Intermediate (WTI) crude futures also rose by 43 cents to $68.61 per barrel.
This increase comes after a decline last week, with Brent dropping around 3% and WTI falling by about 5%, driven by concerns over weaker demand following underwhelming fiscal stimulus from China, the world’s top oil importer.
The rise in prices on Monday was primarily attributed to fears of a widening Middle East conflict. Israel intensified its attacks on Iranian-backed Hezbollah and Houthi militant groups, raising the risk of supply disruptions from key oil-producing regions, particularly Iran, a major OPEC member.
Analysts, including Priyanka Sachdeva from Phillip Nova, highlighted that while oversupply concerns remain, the potential for Middle Eastern unrest could severely affect global oil supply. Additionally, the US has bolstered its military presence in the region, signaling readiness to defend against any threats to its personnel or interests.
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