SINGAPORE: Oil prices extended gains on Monday on fears a major spillover in fighting from the Gaza conflict into the Middle East could disrupt regional oil supplies, while approaching US interest rate cuts lifted the global economic and fuel demand outlook, according to Reuters.
Brent crude futures climbed 56 cents, or 0.7 percent, to $79.58 a barrel by 09:15 a.m. Saudi time, while US crude futures were at $75.40 a barrel, up 57 cents, or 0.75 percent.
In one of the biggest clashes in more than 10 months of border warfare, Hezbollah fired hundreds of rockets and drones into Israel on Sunday, as Israel’s military said it struck Lebanon with around 100 jets to thwart a larger attack.
The clash raises fears the Gaza conflict risks morphing into a regional conflagration that would draw in Hezbollah’s backer Iran and Israel’s main ally the US.
“Geopolitical risk factors will likely influence the oil market significantly,” said Kelvin Wong, a senior market analyst at OANDA in Singapore.
“Increased odds of a tit-for-tat retaliation attack by Hezbollah and Iran in response to Israel’s pre-emptive strike on Hezbollah sites in Southern Lebanon may keep WTI crude supported.”
Both oil benchmarks gained more than 2 percent on Friday after US Federal Reserve Chair Jerome Powell endorsed the start of interest rate cuts.
“The prospect of easing monetary policy boosted sentiment across the commodity complex,” ANZ analysts said in a note, adding it expects the Fed will implement a progressive series of rate cuts.
Still, oil prices were down last week as a poor outlook for major economies weighed on fuel demand, the bank said.
Oil traders also remain cautious over the actions of OPEC and its allies, or OPEC+, which has plans to raise output later this year, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“The cartel had recently trimmed its outlook for global oil demand, citing concerns over weak demand in top oil importer China,” Sachdeva said.
“Current robust US demand and refilling of SPR reserve look as the only support for oil prices against the risk of excess OPEC supply,” she said, referring to the US Strategic Petroleum Reserve.
The US Energy Department said on Friday it bought nearly 2.5 million barrels of oil to help replenish the SPR.
The number of operating US oil rigs was unchanged at 483 last week, Baker Hughes said in its weekly report.
Oil Updates — prices climb on Mideast escalation fears, US rate cut expectations
https://arab.news/pvdcf
Oil Updates — prices climb on Mideast escalation fears, US rate cut expectations
- Brent crude futures climbed 56 cents, or 0.7%, to $79.58 a barrel
- US crude futures were at $75.40 a barrel, up 57 cents, or 0.75%
Global investors commit more than $3bn to King Salman Park as Saudi giga-project secures new deals
RIYADH: The King Salman Park Foundation has secured more than $3.8 billion in new private-sector commitments at the MIPIM 2026 real estate conference, including a landmark $3 billion fund backed by international investors to develop a major mixed-use district in the heart of Riyadh.
According to a press release, the announcements bring total committed investment in the 17.2 sq. kilometers urban regeneration project to over $5.3 billion across five major packages.
Launched in 2019 under Saudi Vision 2030, the development is designed to be the world’s largest city park and aims to boost green space, improve quality of life, and feature over 1 million trees and extensive leisure facilities.
A $3 billion metro-connected district
The largest of the two packages, designated Package 5, will see a consortium led by Kolaghassi Development Co. deliver a residential-led district with a total built-up area exceeding 1 million sq. meters.
It will provide approximately 3,700 residential units, a K–12 school, around 300 hospitality keys and more than 100,000 sq m of Grade A office space alongside a wide variety of retail and dining offerings.
The development is supported by a Saudi-domiciled, Capital Market Authority-regulated fund managed by Mulkia Investment Co. that has attracted leading investors from the Kingdom and across the world.
Kolaghassi Development Co. will lead the project alongside Al Othaim Investment, one of the Kingdom’s real estate players, and RXR, a New York-headquartered real estate investor and operator.
“Securing investment of this scale, supported by international capital and expertise, is an important milestone for King Salman Park,” said George Tanasijevich, CEO of King Salman Park Foundation.
$850 million cultural district package
In a separate announcement, the Foundation confirmed the award of Package 4 to a consortium led by Retal Urban Development Co., with support from a fund managed by SAB Invest.
The project has a total value exceeding $850 million and will host more than 600 residential units, over 140 hotel keys, and almost 50,000 sq m of Grade A office space, alongside curated retail and food and beverage experiences.
“This opportunity reflects the maturity of Saudi Arabia’s real estate investment landscape and our confidence in culture-led, mixed-use urban destinations as a driver of sustainable returns,” said Abdullah Al-Braikan, CEO and founder of Retal Urban Development Co.
Ali Al-Mansour, CEO of SAB Invest, said the fund structure brings together “long-term capital, experienced development partners, and a shared commitment to place-making excellence” while contributing to Riyadh’s cultural vibrancy and the Kingdom’s quality-of-life ambitions under Vision 2030.
