Oil prices to rise further on Monday as Mideast war escalates

Oil futures closed at their highest levels in nearly four years and look set to rise further on Monday after reciprocal U.S. and Iranian threats to target energy facilities. The escalation raises near-term upside risk to oil prices, heightens supply-disruption and inflationary concerns, and supports energy-sector outperformance while increasing market volatility and risk-off positioning.

Analysis

Oil futures closed at their highest levels in nearly four years and look set to rise further on Monday after reciprocal U.S. and Iranian threats to target energy facilities. The escalation raises near-term upside risk to oil prices, heightens supply-disruption and inflationary concerns, and supports energy-sector outperformance while increasing market volatility and risk-off positioning.