Geopolitical Tensions Spike Oil Prices Amid Middle East Conflict

In a volatile trading session on Monday, oil prices saw an increase following the United States' decision to support Israel in striking Iran's nuclear facilities. The move has sparked investor apprehension over potential oil supply disruptions due to the escalating Middle Eastern conflict.

U.S. President Donald Trump announced the obliteration of key Iranian nuclear sites, signaling a deeper entrenchment in regional hostilities. As Iran, the third-largest OPEC crude producer, threatens retaliation, the specter of geopolitical turmoil influences market sentiments, with China criticizing the U.S. actions as destabilizing.

The Strait of Hormuz remains a focal point, given its significance in global oil supply chains. Analysts caution that any Iranian move to disrupt this vital passage could spurt price spikes. Goldman Sachs suggests that even a partial shutdown could momentarily elevate Brent prices to $110 a barrel.

(With inputs from agencies.)