Brent tops $80 on Middle East fears before slipping as China briefing disappoints

Oil prices surged more than 3% on Monday, with Brent climbing above $80/barrel for the first time since August, driven by escalating tensions in the Middle East. Brent crude increased by $2.88, settling at $80.93/barrel, while WTI NYMEX rose by $2.76, closing at $77.14/barrel.

Last week, both benchmarks posted their biggest weekly gains since early 2023, fueled by clashes between Israel and Iran. US President Joe Biden’s remarks about potential Israeli strikes on Iran’s oil infrastructure have heightened market concerns. Goldman Sachs analysts predicted that Brent could surpass $90/barrel if Iranian oil supplies are disrupted.



In the US, concerns over Hurricane Milton in the Gulf of Mexico also contributed to supply fears, as Chevron evacuated personnel and shut production.

Nonetheless, oil prices dropped by more than $1/barrel on Tuesday’s intra-day sessions. According to Bloomberg, China’s top economic planner concluding a much-anticipated briefing on Tuesday without announcing any new stimulus measures raised demand fears in the market, pulling prices down. Brent fell below $80/barrel to trade at $79.75/barrel while WTI NYMEX hovered around $76/barrel at the time of writing, both down almost 2% on a daily basis.