Middle East Conflict Drives Oil Prices to Six-Week Highs

Oil prices have risen to six-week highs due to escalating tensions in the Middle East. Brent crude futures rose $1.03, or 1.1%, to settle at $97.31 a barrel on Monday, while US West Texas Intermediate crude was up 1.3% at $92.65.

The conflict began when the US and Israel struck Iran on February 28, leading to a war between the two countries that has severely impacted global oil supply. The war has forced nations to burn through stockpiles to avoid deficits, with inventories of petrol and distillate fuel in the United States substantially below year-ago and five-year seasonal averages.

Iran's Parliament Speaker Mohammad Baqer Qalibaf vowed to strike energy infrastructure across the Middle East in response to further US attacks on its assets. This has heightened regional tensions, with Israeli strikes on a town in southern Lebanon killing at least 12 people on Monday.