Oil rates surge over concerns of escalations in Middle East conflict

(MENAFN) Oil prices increased on Monday, recovering some of last week's losses, due to concerns that the Middle East conflict could escalate following a rocket attack on the Golan Heights.

Brent crude futures climbed 20 cents, or 0.3 percent, to USD81.33 a barrel by 0010 GMT, as reported by a UK news outlet. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose 9 cents, or 0.1 percent, to USD77.25 a barrel.

The previous week saw Brent decline by 1.8 percent and WTI drop by 3.7 percent, driven by weak demand from China and optimism for a ceasefire in Gaza. However, the situation changed on Sunday when the Israeli Security Cabinet gave Prime Minister Benjamin Netanyahu's government the authority to decide on the response to the rocket attack on the Golan Heights, which killed 12 children and teenagers on Saturday.

Hezbollah has denied responsibility for this attack, which is the deadliest in Israel or the annexed territories since the start of the Gaza conflict. The violence has spread across multiple fronts and poses a threat of developing into a broader regional war. "Concerns over escalating tensions in the Middle East led to fresh buying, but gains were limited by ongoing concerns over weak demand in China," noted Toshitaka Tazawa, an analyst at Fujitomi Securities.

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