Oil Prices Surge Amid Middle East Tensions

Oil prices surged significantly on Monday, with West Texas Intermediate (WTI) light crude rising over 3% to exceed $77 per barrel, driven by escalating geopolitical tensions in the Middle East and supply disruptions in Libya. The recent spike follows violent exchanges between Israel and Hezbollah, with both sides launching extensive strikes in retaliation for the killing of a senior Hezbollah commander. This conflict raises fears of a broader Middle East conflict potentially involving Iran, heightening concerns about regional oil supply disruptions. Additionally, Libya's eastern government announced a halt to oil production and exports amid a dispute with the western government, further straining global oil supply. The oil market also received a boost from the Federal Reserve's indication of upcoming interest rate cuts, which weakened the US dollar and lifted demand for dollar-denominated commodities. Despite these tensions, some analysts suggest that the increase in oil prices may be short-lived unless the conflict escalates further.