Oil prices climbed on Monday as missiles flew in the Gulf, with the Iran war grinding into another week and reinforcing worries about Middle East supply. Reuters reported that crude is expected to hold above $80 a barrel as the risk to regional output persists, a threshold that has become a marker for how seriously traders are taking the conflict's staying power.
The rally is landing at an awkward moment for Washington's safety net. Reuters reported that the US oil stash has lost potency as the war grinds on, a sign that the reserve built up for exactly this kind of shock is not carrying the same weight it once did the longer the fighting continues.
The move rippled beyond the oil market itself. Reuters reported that bond markets faced fresh selling as oil prices jumped, while stocks turned cautious. In Europe, equities edged lower even as the region kept a monthly gain in sight, a reminder that a broader advance can still wobble on a single-day energy shock.
The question now is durability: whether the reserve drawdown becomes a bigger constraint if the conflict extends further, and whether crude's grip above the $80 level holds once traders get a clearer read on how much supply is actually at risk in the Gulf.