Key facts
- Oil prices pared gains on Monday after Iran announced its initial wave of attacks on Israel was over.
- Prices had previously risen more than 5% amid renewed Israeli strikes on Iran and attacks on Lebanon.
- Brent crude futures were up 1.5% to $94.52 a barrel, and U.S. WTI crude futures were up 1.1% to $91.57.
- Israel struck a petrochemical plant in southwestern Iran, while Iran's IRGC claimed retaliation against an Israeli facility.
- Iran warned of harsher attacks if Israel continues strikes on Lebanon.
- OPEC+ agreed to its fourth oil output target increase in four months on Sunday.
Oil prices pared gains on Monday after Iran's military announced that its initial wave of attacks on Israel had concluded. Earlier in the session, prices had surged over 5% due to renewed Israeli strikes on Iran and attacks on Lebanon, which had diminished hopes for an immediate end to the wider conflict.
Brent crude futures were up 1.5% to $94.52 a barrel, and U.S. West Texas Intermediate crude futures rose 1.1% to $91.57. Israel reported hitting a petrochemical plant in southwestern Iran used for ballistic missiles, while Iran's Islamic Revolutionary Guard Corps stated it retaliated against a similar Israeli facility. These exchanges followed Israeli strikes on Hezbollah strongholds in Beirut over the weekend.
Analysts noted concerns that flows through the Strait of Hormuz, a critical chokepoint for global oil and LNG supply, might remain restricted. Iran's ambassador to Moscow suggested the strait would remain open under conditions set by Iran and Oman, potentially including transit fees.
U.S. President Donald Trump urged both Israel and Iran to cease hostilities. In response to supply concerns, OPEC+ agreed on Sunday to its fourth oil output target increase in four months. However, analysts anticipate minimal impact, as many members are already struggling to meet existing targets due to geopolitical disruptions.