Oil prices rose by about 0.5%, helped by the tense situation in the Middle East, as well as easing fears of a recession in the United States. Meanwhile, the positive dynamics of the US currency limited the growth of oil prices.
"The latest US data was better than expected, which reduced investor concern about the recession in the United States. However, the likelihood has increased that Iran may try to take revenge on Israel for the murder of key Hamas and Hezbollah leaders," IG Markets experts said, adding that the Israeli incursion into Gaza intensified on Saturday with an airstrike on a school compound, while yesterday Hamas questioned its participation in new negotiations about the cease-fire.
Last week, oil prices jumped by more than 3.5% on the back of favorable economic data and increased hopes for an interest rate cut in the United States. The next important event for the markets will be the publication of the US CPI for July, which will take place on Wednesday. Economists look for rises of 0.2% in both the headline and core, with the annual core slowing a tick to 3.2%. That would likely bolster the Fed's confidence that disinflation is ongoing, allowing for a rate cut in September.