Oil Prices Hold Steady Amid Iran Strike Threat on Israel - Investing.com
Oil prices in Asia stabilized on Monday, maintaining gains from last week as reports hint at a potential Iranian strike on Israel. Positive economic data has also boosted market sentiment, easing concerns about a U.S. recession. With more key economic data releases scheduled for this week, investors are keeping a close eye on market developments.
Despite a market holiday in Japan leading to lower trading volumes, oil prices remained relatively stable. Crude oil for October delivery fell slightly to $79.50 a barrel, while Brent crude dropped to $78.74 a barrel by 21:09 ET.
According to Axios, Israeli intelligence has warned of an imminent attack from Iran, likely in retaliation for the killing of Hamas leader Ismail Haniyeh in Tehran. This news has fueled tensions in the region, with Israel continuing its offensive in Gaza over the weekend.
The ongoing conflict has raised concerns about potential disruptions to oil supplies in the Middle East, leading traders to factor in a higher risk premium for oil prices. In addition to geopolitical tensions, investors are also awaiting inflation readings from major economies this week, including the U.S., India, and the UK.
Prior to last week, oil prices had been declining for four consecutive weeks due to fears of slowing economic growth in key markets like the U.S. and China. However, recent economic data from the U.S. has suggested that a recession may not be imminent, prompting some investors to shift towards crude oil.
Looking ahead, monthly reports from organizations like the EIA and OPEC are set to be released this week, providing further insights into the oil market. Stay tuned for more updates on market trends and economic developments.
Analysis:
- Oil prices remain stable amidst geopolitical tensions in the Middle East.
- Positive economic data eases concerns about a U.S. recession.
- Investors are closely monitoring key economic data releases this week.
- Geopolitical risks and inflation readings are key factors influencing market sentiment.
- Monthly reports from organizations like the EIA and OPEC will offer additional insights into the oil market.