Global oil prices moved higher on Monday, hovering close to the USD 95 per barrel mark, as fresh geopolitical tensions in the Middle East, triggered by a new Israeli strike on Lebanon, rekindled supply concerns and pushed investors toward crude futures.
Benchmark crude prices reflected the cautious sentiment. Brent crude rose over 2 per cent to trade at USD 93.30 per barrel, while U.S. West Texas Intermediate (WTI) gained nearly 3 per cent to USD 89.80 per barrel.
The latest gains in crude prices were largely fueled by renewed hostilities between Israel and Lebanon, raising concerns over broader instability in the Middle East. Adding to the uncertainty are ongoing diplomatic developments involving Iran and the United States. U.S. President Donald Trump indicated that a final decision on Iran would follow a high-level Situation Room meeting, reiterating that Tehran must not acquire nuclear weapons. He also called for the immediate reopening of the Strait of Hormuz—a critical shipping lane for global oil supplies.
However, Iran’s parliament speaker rejected a U.S.-backed ceasefire proposal, emphasising that Tehran “seizes concessions with missiles, not dialogue,” further clouding prospects for near-term geopolitical stability. Despite geopolitical tensions, broader financial markets signaled strength, particularly in the United States. Wall Street extended its rally, buoying investor confidence globally.
The Dow Jones Industrial Average surged 363 points, marking its third consecutive day of gains and crossing the 51,000 milestone for the first time. The Nasdaq Composite rose 55 points, notching its seventh straight positive session and closing at a record high. The S&P 500 posted steady gains as well, advancing over the week and extending its winning streak to nine consecutive weeks.
Market optimism was partly supported by reports of a temporary 60-day extension of the Iran-U.S. ceasefire, which helped temper some geopolitical risks even as tensions persisted. Asian equities mirrored the upbeat tone from Wall Street, contributing to a broadly risk-on sentiment across global markets.
Japan’s Nikkei rose nearly 450 points, marking its second consecutive session of gains. South Korea’s Kospi index surged approximately 2.25 per cent, reaching a record high.
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