Oil prices in the Middle East were affected by both escalating tensions and concerns over demand.

Brent crude futures remained relatively stable at $71.11 per barrel, while US West Texas Intermediate (WTI) crude futures saw a slight increase to $67.21 per barrel.

Last week, Brent experienced a decline of over 2.5%, and WTI fell by 1.2%.

Analysts predict a supply surplus in the coming year due to weak demand, despite OPEC+ extending significant production cuts until the end of 2026.

Saudi Aramco, the largest crude oil exporter globally, recently reduced its January 2025 prices for Asian buyers to the lowest levels since early 2021.

This decision was made in response to sluggish demand from China, the top importer, which has further impacted market dynamics.