Oil prices rose modestly in early trading on Monday as investors continued to track developments linked to the ongoing Iran conflict and its impact on global energy supply routes.
International benchmark Brent crude climbed around 1 percent to trade near $109 per barrel, while US benchmark West Texas Intermediate (WTI) also gained about 1 percent to hover close to $103 per barrel. The increase came as markets reacted to comments from Donald Trump regarding a US plan to assist vessels stranded near the Strait of Hormuz.
Washington has indicated that a new operation aimed at easing maritime congestion could begin soon, though Iran has rejected the proposal. The situation in the Strait of Hormuz, a key route for global oil shipments, remains a major concern for traders and policymakers.
European stock markets opened with limited movement. The Euro Stoxx 50 and the Stoxx Europe 600 both traded within a narrow range. Major national indices, including Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB, showed similarly muted activity.
Market analysts say uncertainty over the conflict and its effect on shipping lanes continues to weigh on sentiment. Large numbers of oil tankers and cargo vessels remain stranded in the Gulf, creating storage challenges and forcing some producers to scale back output.
In Asia, trading showed stronger momentum. Hong Kong’s Hang Seng Index rose 1.4 percent, while South Korea’s KOSPI surged 3.8 percent. Taiwan’s TAIEX jumped 4.2 percent, driven largely by gains in technology stocks. Markets in mainland China and Japan were closed for holidays, while Australia’s S&P/ASX 200 slipped slightly.
On Wall Street, the S&P 500 reached another record high at the end of last week, supported by strong corporate earnings. The Nasdaq Composite also closed at a record level, while the Dow Jones Industrial Average edged lower.
Technology stocks played a major role in the rally, with Apple posting better-than-expected profits, boosting investor confidence. Earnings data shows a large share of US companies have exceeded expectations so far this quarter, even as higher energy costs and geopolitical tensions continue to affect consumer sentiment.
Oil prices remain a central factor for the global economy. Before the conflict began, Brent crude traded at just over $70 per barrel, and the sharp rise since then has added pressure on inflation and energy costs worldwide.
Currency markets also reflected shifting sentiment, with the US dollar strengthening against the Japanese yen, while the euro weakened slightly against the dollar. Investors are expected to remain focused on developments in the Middle East, particularly any progress toward reopening key shipping routes.
