Oil Edges Higher Despite US-Iran Escalation in Gulf

Oil prices opened slightly higher on Monday, as traders largely ignored the re-escalation of geopolitical risks in the Persian Gulf. The weekend clashes between the United States and Iran failed to trigger a significant rally in crude futures.

Some market observers caution that the current calm may be misplaced. They argue that the oil market is pricing in a too-optimistic recovery scenario for the region, underestimating the potential for prolonged disruption.

No major supply outages have been reported, but the situation remains fluid. Participants are watching for further developments that could shift sentiment quickly.