Oil Prices Surge on Ongoing Middle East Tensions
WTI US Oil prices surged to over $82 on Monday, driven by ongoing concerns about supply disruptions in the Middle East. The standoff between the United States and Iran remains a major factor, with tensions escalating after Iranian Deputy Foreign Minister Kazem Gharibabadi called on US President Donald Trump to 'accept the reality of defeat.'
The Strait of Hormuz, through which a significant portion of global oil supplies pass, remains a point of contention. Prospects for a full reopening of the waterway are uncertain, with Iranian Foreign Minister Abbas Araghchi stating that no negotiations are currently taking place between the two countries.
Russia is also facing fuel shortages after Ukraine resumed near-daily attacks on Russian Oil refineries, adding another layer of uncertainty to global energy supplies. Traders will be closely watching the American Petroleum Institute's (API) weekly US Crude Oil inventory report due out on Tuesday for any signs of changes in supply and demand.