Oil prices rose slightly on Monday as geopolitical tensions and positive Chinese economic data supported market sentiment. Brent crude settled up 49 cents (0.7%) at $71.07, while WTI gained 40 cents (0.6%) to $67.58.
The U.S. expanded military operations in the Middle East, vowing to continue strikes against Yemen’s Houthi rebels until their attacks on shipping cease. President Trump warned Iran it would be held responsible for Houthi actions, adding to supply concerns.
Meanwhile, Chinese economic data signaled stronger demand, with crude oil throughput rising 2.1% in January-February due to increased refining activity and holiday travel. Retail sales growth improved, but unemployment and weaker factory output tempered optimism.
A weaker U.S. dollar also supported prices, making oil cheaper for overseas buyers.
Despite Monday’s gains, Brent remains down nearly 5% in 2025, pressured by global economic slowdown fears and OPEC+ plans to increase oil output in April. However, analysts believe tighter U.S. sanctions on Iran could offset this additional supply.
Trump announced plans to discuss the Ukraine war with Putin on Tuesday, with potential territorial concessions by Kyiv on the agenda. A peace deal could increase Russian crude supply to global markets, which weighs on oil prices, according to analysts.
In the U.S., crude stockpiles were expected to rise, while distillate and gasoline inventories were likely to fall, ahead of official data releases later this week.