Brent crude oil futures hovered around $74 per barrel on Monday, easing after surging over 5.5% earlier and following a 7% rally on Friday. The retreat came as investors scaled back risk-off trades amid signs that the Israel-Iran conflict may not escalate further. Traders now believe the tensions are likely to remain contained, especially as Iran’s oil infrastructure remains untouched.
However, renewed strikes by both countries over the weekend kept markets on edge, raising fears of broader regional instability. A key concern is potential disruption to the Strait of Hormuz, a critical chokepoint through which about 18–19 million barrels per day, or roughly 20% of global oil consumption, passes. While direct supply impacts have been limited so far, geopolitical risks remain elevated. Meanwhile, Iran canceled nuclear talks with the US that were set for Sunday in Oman.
