Oil prices climbed more than $1 a barrel on Monday, supported by rising geopolitical tensions tied to Russia, Ukraine and the Middle East, as traders reassessed near-term supply risks. Brent crude gained $1.30, or 2.1%, to settle at $61.94 a barrel, while U.S. West Texas Intermediate rose $1.34, or 2.4%, to $58.08.
The move higher followed Russia’s accusation that Ukraine launched a drone attack on President Vladimir Putin’s residence, a claim Kyiv denied. The incident raised fresh uncertainty around the Russia-Ukraine peace process after recent optimism that talks were progressing, prompting markets to factor in a higher geopolitical risk premium. Analysts said any reversal or delay in negotiations could keep upward pressure on crude prices in the near term.
Attention has also shifted to the Middle East, where renewed instability in Yemen has revived concerns about potential supply disruptions. Saudi airstrikes targeting separatist forces in eastern Yemen added to unease in energy markets already sensitive to shipping and production risks in the region. While no direct oil infrastructure has been affected, traders remain alert to any escalation that could threaten regional supply routes.
Additional support came from strong Chinese seaborne crude imports, which analysts said are helping absorb excess barrels and underpin prices around current levels. Some market participants see $60 a barrel for Brent as a near-term floor, with expectations that non-OPEC+ supply growth could begin to stall by mid-2026.
Investors were also awaiting U.S. inventory data for the week ended December 19, with preliminary estimates pointing to a draw in crude stockpiles alongside builds in gasoline and distillate inventories. The delayed release left traders cautious late in the session, but did little to offset the broader geopolitical momentum supporting prices.