Oil prices climb on Middle East tensions, supply concerns

Brent crude futures rose 34 cents, or 0.35 per cent, to US$97.34 a barrel, reflecting investor concerns over escalating Middle East tensions and their potential impact on energy markets.

The modest gains underscored persistent worries among traders that prolonged conflict in the region could disrupt oil production and exports. The Middle East remains a critical hub for global crude supplies, with any sustained disruptions capable of sending shockwaves through international energy markets.

Oil markets have remained volatile in recent months as geopolitical developments continue to weigh on sentiment. Analysts note that while current price movements have been measured, the underlying supply risks remain a key factor guiding trader behaviour.

The uptick in crude prices could have implications for energy costs across Asia-Pacific economies, including Singapore, which relies heavily on imported oil and refined petroleum products. Market participants will continue monitoring developments in the region closely for signals of any escalation that could further tighten supplies.