Oil prices extended gains on Friday as escalating tensions in the Middle East raised concerns over potential disruptions to key export infrastructure. Analysts noted that attacks on strategic facilities in Saudi Arabia and the United Arab Emirates have heightened fears of supply chain instability, pushing Brent crude above per barrel and West Texas Intermediate (WTI) above . The International Energy Agency (IEA) warned that even minor disruptions in the region could have global repercussions due to its role as a major oil exporter. The market reaction underscores the sensitivity of energy prices to geopolitical risks. Traders are increasingly hedging against volatility, with crude futures contracts showing elevated open interest. This development also impacts global inflation dynamics, as higher energy costs could delay central banks' easing cycles. Equity markets in energy sectors, particularly in the Gulf Cooperation Council (GCC), have seen mixed reactions, with some investors capitalizing on short-term opportunities. For Gulf investors, the situation highlights the need to monitor regional security developments closely. The OPEC+ alliance's upcoming meeting in June will be critical in determining whether production cuts will be adjusted to stabilize prices. Traders should also watch for updates on infrastructure resilience in the Middle East and potential responses from global energy markets.

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