Oil prices rose modestly on Monday as escalating U.S. military strikes against Yemen’s Houthi rebels and improved Chinese economic data bolstered market sentiment. The uptick followed President Donald Trump’s pledge to hold Iran accountable for Houthi attacks on Red Sea shipping and fresh strikes targeting Hodeidah and Al Jawf.
China’s January-February economic indicators provided further support, with retail sales growth accelerating and crude oil processing rising 2.1% year-on-year. However, weaker factory output and refining margins tempered optimism. Analysts noted that China’s stimulus efforts and Red Sea supply risks offset broader concerns over a global economic slowdown fueled by Trump’s trade policies.
OPEC+ plans to boost output from April and potential U.S.-Russia peace talks on Ukraine added downward pressure, though tighter U.S. sanctions on Iran could counterbalance these factors. Traders also eyed upcoming U.S. inventory data, expecting crude stockpiles to rise while gasoline and distillates decline.