Oil Prices Hold Firm Amid Ongoing Middle East Tensions

Oil prices continued to hover near recent highs on Monday, as investors remained cautious due to ongoing tensions in the Middle East. The Strait of Hormuz, a strategically vital waterway, has seen shipping traffic severely curtailed following attacks on tankers.

The Brent crude benchmark edged 0.1% lower to $88.48 a barrel, while US West Texas Intermediate (WTI) traded above $82. Uncertainty over the reopening of the Strait of Hormuz is keeping traders on edge, with continued crude movements and alternative supply routes helping to contain the immediate impact on global availability.

The geopolitical risks have also been compounded by fresh Israeli strikes in Lebanon, adding to concerns that the conflict could spread further across the region. Market attention is now focused on whether the disruption will persist long enough to create a sustained supply deficit and exert further upward pressure on energy prices.