Despite the bullish trend, market sentiment remains fragile. Analysts warn that oil prices could sharply reverse by $5-7/barrel if Israel avoids directly targeting Iranian oil infrastructure, which would ease supply concerns.
Global crude oil prices surged to record weekly highs as geopolitical tensions in the Middle East escalated, driving market fears of a potential supply disruption. On Friday, 04 October, international oil benchmarks extended their rally, posting the largest weekly gains in over a year.