The news: Energy stocks gained on the ASX as concerns of potential supply disruptions in the Middle East drove up oil prices.
The numbers: Brent crude was up 0.66% or 47 US cents to US$72.01 a barrel by 1:50pm AEST. West Texas Intermediate crude added 0.57% or 39 US cents to US$68.57.
Oil and gas majors Karoon Energy (6%), Beach Energy (3.8%), Woodside Energy (3.6%), Santos (2.5%) and Ampol (1.5%) were all trading higher. Energy, up 2.36%, was the best performing sector as the wider market rose 0.8%.
Karoon also announced that its Who Dat operations had restarted after a precautionary shut-in as Hurricane Helene made landfall.
Last week, Brent fell around 3%, while WTI fell around 5%, after media reports that Saudi Arabia is preparing to abandon its crude price target ahead of raising output in December.
The context: Prices on Monday were boosted by the possibility of a broader conflict in the Middle East, Reuters reported.
Risk of production disruptions in Iran, a key producer and member of the Organization of the Petroleum Exporting Countries (OPEC), were heightened after Israel increased its attacks on Iran-backed militant groups Hezbollah and the Houthi.
Israel targeted Yemen’s Houthis on Sunday, while Hezbollah confirmed the recent killing of another senior official in Lebanon, Nabil Kaouk, days after airstrikes in Beirut killed its leader Hassan Nasrallah.
Read More: Energy stocks gain as Israel strikes threaten Iran oil supply — Capital Brief