Oil prices edge higher after strikes on Israel test ceasefire

Oil prices saw an uptick in early Asian trading on Monday, reacting to Iran's unprecedented missile strikes on Israel. This development, occurring after a fragile ceasefire had been established in April, heightened concerns about the stability of global energy supplies.

Benchmark Brent crude futures experienced a 2.6% surge, reaching $95.50 per barrel, while US-traded crude climbed 2.5% to $92.75. Traders are closely monitoring the situation, weighing the potential long-term impact on oil and gas shipments from the critical Strait of Hormuz trade route, which Iran had previously threatened to disrupt.

Amidst the escalating tensions, former US President Donald Trump reportedly communicated his intention to advise Israeli Prime Minister Benjamin Netanyahu against retaliation. According to Axios, Trump emphasized the importance of not jeopardizing a "final deal" with Iran, suggesting that a retaliatory strike could derail ongoing negotiations.

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I am going to call Bibi right now and tell him not to retaliate. We are very close to a final deal with Iran. It is going to be a good deal. I don't want it to blow up because of what is happening now.