Oil prices extended their upward trend Monday, rebounding from an earlier dip, as escalating tensions between Israel and Iran fueled concerns over supply security in the Middle East.
International benchmark Brent crude increased by around 0.25%, trading at $73.86 per barrel at 09.59 a.m. local time (0659 GMT), up from $73.67 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) increased by about 0.54%, settling at $71.99 per barrel, compared to $71.60 in the prior session.
Prices hit a five-month high on Friday as rising tensions between Israel and Iran raised concerns over supply disruptions in the oil-rich region.
Israel launched large-scale attacks Friday, targeting nuclear facilities and top military command centers in several Iranian cities, prompting a response from Iran with ballistic missile strikes.
Neither side took steps to de-escalate over the weekend, fueling fears that the conflict could intensify further.
The escalating hostilities have reinforced expectations of potential disruptions to regional oil supplies and heightened concerns over the security of the Strait of Hormuz, a vital chokepoint for global energy trade.
A natural gas processing facility tied to Iran's South Pars field and the Shahran fuel and gasoline depot were struck in Israeli attacks, while Iranian missile strikes damaged Israel's Bazan oil refinery and associated pipelines, Daniel Hynes, a senior commodity strategist at the Australia and New Zealand Banking Group, said in a note.
"While these facilities will have little impact on the international market, they represent a significant shift from the tit-for-tat attacks the two sides have exchanged in the past," Hynes added.
Meanwhile, US President Donald Trump said Sunday there is "a good chance" there will be a deal between Israel and Iran despite ongoing military confrontations.
"I hope there is going to be a deal," he told reporters, expressing optimism for a diplomatic resolution.
Trump acknowledged the complexity of the situation, however, saying: "I think it's time for a deal. We will see what happens, but sometimes they have to fight it out."
Later, during a Sunday press briefing before departing for the G7 summit in Canada, Trump said, "I think it's time for a deal, and we'll see what happens."
Trump on Sunday denied American involvement in Israeli attacks on Iran while threatening massive retaliation if Tehran targets the US.
"The US had nothing to do with the attack on Iran tonight," Trump wrote on Truth Social, distancing Washington from the strikes.
Market watchers are also awaiting OPEC's Monthly Oil Market Report, set to be released later in the day.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr