Oil prices edged higher on Monday as markets reacted to renewed geopolitical tensions and developments in Ukraine peace talks.
Investors are on alert as concerns over potential supply disruptions from the Middle East combined with progress in diplomatic efforts to end Russia’s war in Ukraine helped lift crude benchmarks.
Brent crude traded above $60 per barrel, up about 0.7 % from last week’s close, while US West Texas Intermediate (WTI) also climbed roughly 0.7 %, as per Anadolu Agency.
The gains came despite lingering worries about oversupply in 2026, driven by rising non-Opec output and softer demand projections.
Supply worries fuel price gains
Market jitters about global supply were heightened by escalating tensions in the Middle East.
Saudi Arabia’s aerial operations against Yemen and comments from Iranian President Masoud Pezeshkian, who described Iran as being in a state of “comprehensive war” with the US, Israel, and Europe, contributed to the nervous mood among traders.
“It’s more dangerous, more complex, and more difficult than the war with Iraq,” Pezeshkian said in comments published on Iran’s Supreme Leader’s website, adding to fears that any extension of conflict could impact oil flows from the region.
Talks on Ukraine war also in focus
At the same time, progress in diplomatic efforts to end the conflict in Ukraine helped support prices. According to the report, US President Donald Trump said there had been “significant progress” toward ending the war following his meeting with Ukrainian President Volodymyr Zelenskyy.
Zelenskyy highlighted the scope of discussions, saying that they had “really great discussions on all the topics,” with about 90% of a 20-point peace plan agreed upon. He noted that US-Ukraine security guarantees are fully agreed, broader security guarantees involving Europe are nearly finalised, and the military dimension has been fully agreed, while a prosperity plan is still being worked out.
Despite the uptick in prices, analysts caution that long-term gains may be limited.
