WTI crude oil futures rose more than 1% to above $57 per barrel on Monday, trimming a loss of more than 2% from the previous session, as investors weighed Middle East tensions and developments in Ukraine peace talks. Unrest in the Middle East, including Saudi air strikes in Yemen and Iran’s declaration of a ‘full-scale war’ with the US, Europe, and Israel, is fueling concerns over potential supply disruptions. Meanwhile, President Donald Trump described his discussions with Ukrainian President Volodymyr Zelenskiy as making “a lot of progress,” while Zelenskiy said a peace framework is nearly complete, with 90% of the terms agreed, though key issues remain unresolved. Separately, China announced plans to expand fiscal spending in 2026, signaling continued support for economic growth, which could boost oil consumption. Still, oil is still on track for a loss of more than 20% this year, its steepest annual decline since 2020, amid expectations of a global surplus next year.
