The crude oil market recorded stable prices on Monday and pared the previous week's losses amid fears of a widening conflict in the Middle East following rocket attacks on Israel's Golan Heights.
The attack dragged the United States and Israel into blaming the armed group Hezbollah in Lebanon.
Meanwhile, Brent crude rose 40 cents (0.5%) to $81.53 a barrel and US West Texas Intermediate (WTI) rose 34 cents (0.4%) to $77.50 a barrel.
Last week, Brent lost 1.8% and WTI fell 3.7% on weaker Chinese demand and hopes of a Gaza ceasefire deal.
On Sunday, Israel's security cabinet authorized Prime Minister Benjamin Netanyahu to decide on a retaliatory strike against a rocket that killed 12 teenagers and a child.
However, Iran-backed Hezbollah denied responsibility for the attack. The conflict has spread to several areas and risks spilling over into a wider regional conflict.
There are reports that Israel wants changes in the Gaza ceasefire plan and the release of hostages by Hamas. This further complicates the agreement to stop fighting for nine months.
Additionally, data released earlier in July showed that China's total fuel oil imports fell 11% in the first half of 2024 and raised concerns about the prospect of broader demand in the Asian giant, the world's largest crude oil importer.
