As tensions escalate in the Middle East, global oil prices have surged.
On Monday, Brent crude futures for December delivery closed at $80.93 per barrel on the ICE Futures Exchange, a 3.7% increase from the previous trading day. This is the first time Brent crude prices have surpassed $80 per barrel since late August.
Similarly, West Texas Intermediate (WTI) crude rose by 3.7% to $77.14 per barrel compared to the previous session.
The spike in oil prices follows Iran’s large-scale ballistic missile attack on Israel last week, sparking fears of further instability. As Israel hints at a potential retaliation, concerns are mounting that Iranian oil facilities could be targeted, exacerbating supply worries.
UBS analyst Giovanni Staunovo suggested that Institutional investors who had previously bet on falling oil prices may have shifted positions in the light of the growing risks to supply in the region, contributing to the price surge.
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