Oil Markets React to Middle East Strikes Amid Strait Concerns

Oil prices saw a slight decrease on Monday, pulling back from the previous Friday's significant 7% surge. Recent military actions between Israel and Iran did not affect oil production and exports as feared. Brent crude futures dropped 93 cents to $73.30 per barrel, while U.S. WTI futures saw a decrease of 99 cents to $71.99.

The initial price boost followed a dramatic shoot-up caused by investor anxiety over potential impacts on energy flows due to the ongoing conflict. "The crux of the matter is how the geopolitical situation influences oil supply logistics," said Harry Tchilinguirian of Onyx Capital Group.

Despite these conflicts, a major market focus remains on the Strait of Hormuz, a pivotal route for about 20% of the world's oil consumption. Experts warn that any disruption in this passage could significantly raise oil prices globally. Meanwhile, geopolitical players continue fruitless ceasefire negotiations as tensions escalate.

(With inputs from agencies.)