Geopolitical risks in the Middle East drive WTI oil prices up 1.57% as OPEC+ output increases take a backseat.
West Texas Intermediate crude oil climbed to $89.95, gaining 1.57% on Monday, as escalating tensions between Israel and Iran, along with Houthi-related disruptions, overshadowed OPEC+ plans to increase output.
Prior to the rise, WTI had traded lower amid expectations of higher supply from OPEC+ members. Analysts had anticipated a muted reaction to geopolitical risks, but persistent instability in key oil-producing regions reversed the trend.
Markets reacted swiftly, with energy futures rallying as traders priced in potential supply disruptions from the Middle East.