FX.co ★ Brent Crude Prices Pare Gains

Brent crude prices experienced a reversal of early gains, settling around $66.3 per barrel on Monday. This fluctuation occurred as traders balanced geopolitical risks against worries over tariffs and a potential slowdown in demand. Over the weekend, tensions escalated with reports of Russian airstrikes on western Ukraine near the Polish border and incidents of airspace violations in Estonia, alongside Russian military aircraft entering neutral Baltic airspace. These developments have intensified fears of regional conflict. Additionally, the European Union unveiled its 19th sanctions package against Russia on Friday, which includes a ban on LNG imports and restrictions on 118 additional shadow vessels. In the Middle East, geopolitical uncertainty remained a key focus as several nations formally recognized Palestine as a state ahead of a United Nations summit on the "two-state solution" scheduled for today, a move criticized by both Israel and the United States as detrimental. On the supply front, Iraq has increased its oil exports following a gradual rollback of OPEC+ production cuts, contributing to downward pressure on prices.