Oil Prices Set for First Monthly Gain Since September Amid U.S.-Iran Tensions

Geopolitical tensions and potential disruptions to crude supplies overshadow China's contracting manufacturing activity.

Oil prices are set for their first monthly gain since September, despite a dip in prices on Wednesday, due to escalating tensions in the Middle East and potential disruptions to crude supplies.
Geopolitical tensions between the U.S. and Iran are increasing, with the U.S. planning a 'campaign' that could last several weeks, targeting Iranian interests outside Iran in response to a drone strike that killed three U.S. soldiers in Jordan.
Despite the geopolitical tensions, the response in the oil markets has been muted as there has not been a major disruption to crude supplies. A direct confrontation between the U.S. and Iran could send oil prices higher if there's a major disruption in the Strait of Hormuz, a crucial chokepoint for crude flows.
China's economic data is weighing on the market, with manufacturing activity contracting for a fourth consecutive month, impacting global oil demand growth.
Gold prices have also seen an increase, with gold for April delivery rising to $2,067.40 per ounce.