Crude oil futures ended higher on Monday as concerns about potential trade and supply disruptions after a series of retaliatory strikes on Iran-backed militants this weekend by a coalition led by the U.S. and U.K. However, the dollar gained in strength amid fading hopes of an early interest rate cut by the Federal Reserve following recent buoyant economic data, and Fed Chair Jerome Powell's comments that a rate cut is unlikely by March.
Benchmark crude oil futures for March delivery gained $0.50 or about 0.7% to settle at $72.78 a barrel on the New York Mercantile Exchange. Brent crude for April delivery rose $0.66 or about 0.90% to $77.99 per barrel on London's Intercontinental Exchange.