Oil Surges 3% Amid Escalating Middle East Tensions, Gold Falls Sharply

Oil prices are surging on Monday, rising by almost 3% as tensions in the Middle East continue to escalate. The price hike comes after President Trump refused an Iranian ceasefire over the weekend, increasing uncertainty over when the Strait of Hormuz may reopen.

The increase in oil prices is also attributed to improving physical supplies, with data from Kpler showing that crude supplies from OPEC countries increased to 12.8 million barrels per day in September, marking the highest level since February.

However, production remains around 6 million barrels per day below February levels, and attention will remain on developments in the Middle East as Trump expects negotiations with Iran to resume this week through Qatar's mediation.