Hot Commodities: Oil drops 2% as Middle East risks keep markets on edge

Crude oil prices eased towards $100 per barrel on Monday after climbing to six-month highs on Friday, as shifting US-Iran tensions prompted some profit-taking, while renewed attacks involving Saudi Arabia and Iran-backed Houthi rebels kept supply risks firmly in focus. Reports of potential US and Israeli strikes on Iran after the US midterm elections had fuelled the recent rally, with weekend clashes in Yemen adding to regional uncertainty. Although Middle Eastern crude exports have recovered to near pre-war levels, any further escalation could threaten energy flows and limit the downside in prices. On MCX, November crude oil futures traded 1.5% lower at ₹9,656 per barrel. Investors will also monitor the Federal Reserve?s policy decision, US third-quarter GDP and PCE inflation data for fresh cues on the demand outlook.

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