Crude oil prices recorded modest gains at the start of the trading week, reflecting heightened geopolitical concerns in the Middle East and lingering uncertainty surrounding United States trade policy.
In international markets on Monday, Brent crude, the global benchmark, traded above the $65 mark, while US West Texas Intermediate (WTI) also posted gains, supported by rising risk sentiment linked to escalating US-Iran tensions.
Brent crude was priced at $65.49 per barrel, representing a slight increase from the previous session’s close of $65.40. Meanwhile, WTI crude advanced to $61.40 per barrel, up from $61.20 in the prior trading session.
Market analysts attributed the price movement largely to growing security concerns in the Middle East, following high-level military engagements between the United States and Israel. US Central Command (CENTCOM) chief, General Brad Cooper, recently held extended discussions with Israeli military Chief of Staff, Lieutenant General Eyal Zamir, during an official visit to Israel.
According to the Israeli military, the meeting included both private consultations and broader discussions with senior defence officials, focusing on strengthening operational coordination and strategic cooperation between the two allies. Cooper is also expected to hold talks with Israeli Air Force Commander, Major General Tomer Bar, as part of the visit.
The diplomatic and military engagements come amid heightened anxiety in Israel over the possibility of a preemptive strike by Iran, while the United States continues to reinforce its military presence across the region in response to rising tensions with Tehran.
Beyond geopolitics, oil markets are also navigating uncertainty linked to US trade policy. Investors remain cautious as President Donald Trump’s position on Greenland continues to attract global attention. Although the US administration has stepped back from immediate tariff actions, unresolved negotiations and policy ambiguity have weighed on broader market sentiment.
Despite the current price uptick, traders are exercising restraint due to concerns over the medium- to long-term supply outlook. Robust output growth from non-OPEC oil-producing nations has reinforced expectations that global crude markets could slide into surplus later in the year if supply growth continues to exceed demand expansion.
Energy analysts note that increased production from the United States and other non-OPEC producers could limit further upside in prices, even as geopolitical risks remain elevated.
Attention is also turning to monetary policy developments in the United States. Investors are closely watching the Federal Reserve’s policy meeting scheduled for this week, with markets broadly anticipating that interest rates will remain unchanged.
However, futures pricing suggests growing expectations that the Fed could begin cutting rates as early as June, a move that could influence commodity prices by weakening the US dollar and stimulating demand for risk assets, including oil.
For now, oil prices remain caught between geopolitical risk premiums and concerns about oversupply, leaving markets sensitive to both political developments and macroeconomic signals in the days ahead.
