The price of oil rose by about 0.8%, continuing Friday's rally, helped by expectations of increased demand for petroleum products amid the approaching easing of the Fed's monetary policy. Oil was also supported by the escalation of geopolitical tensions in the Middle East.
Media reported that yesterday Hezbollah fired hundreds of rockets and drones into Israel, as Israel's military said it struck Lebanon with around 100 jets to thwart a larger attack. Recent events have increased concerns that more countries may be involved in this conflict. In addition, the attacks took place just hours before mediation talks resumed in the Egyptian capital Cairo, which aims to strike a cease-fire-hosting deal between Israel and Hamas.
Despite Friday's rally - oil prices jumped by more than 2% amid dovish signals from Fed Chairman Powell - prices fell last week, as a poor outlook for major economies weighed on fuel demand.
At the same time, uncertainty remains regarding the actions of OPEC+, which plans to increase production this year. Recently, OPEC+ lowered its forecast for global oil demand, citing concerns about weak demand in China (the world's largest oil importer).