Oil prices rose on concerns about a widening conflict in the Middle East after a missile strike on the Israeli-occupied Golan Heights. Brent crude futures rose 40 cents, or 0.5%, to $81.53 a barrel. U.S. West Texas Intermediate (WTI) futures rose 34 cents, or 0.4%, to $77.50 a barrel, Reuters reported.
Brent crude fell 1.8% and WTI 3.7% last week, weighed down by weaker Chinese demand and hopes for a ceasefire in Gaza. Israel's security cabinet on Sunday gave Prime Minister Benjamin Netanyahu's government the authority to decide on the “way and time” of its response to rocket fire on the Golan Heights that killed 12 teenagers and children. Iran's Hezbollah has denied involvement in the attack, the deadliest in Israel since Hamas launched an attack on Oct. 7. The conflict has spread across multiple fronts and could escalate into a wider regional conflict.
Oil demand has weakened as China's overall fuel oil imports fell 11% in the first half of 2024, raising concerns about future demand in China, the world's largest oil importer.