Geopolitical concerns over oil continue

Oil has hovered near a seven-month low as markets sell off rising tensions in the Middle East and investors are eyeing a possible retaliatory attack by Iran on Israel. Brent futures traded around $77 a barrel after closing at their lowest level since early January on Friday, while U.S. crude held around $74. Global stocks fell on Monday, compounded by concerns the Federal Reserve will delay taking action against the slowing U.S. economy. Still, the market is bracing for a possible attack on Israel by Iran and regional militias in retaliation for the assassinations of Hezbollah and Hamas officials. The U.S. has sent defensive reinforcements to the region. Oil has fallen for four straight weeks on weak demand signals from the U.S. and China, with the Asian nation announcing plans over the weekend to stimulate domestic consumption. Oil was nearly flat for the year after gaining on OPEC+ supply cuts and concerns that conflict in the Middle East could hit output in the region. "While there are rising demand concerns, geopolitical risks continue to hang over the oil market," Warren Patterson, head of commodity strategy at ING Groep in Singapore, said in a note.