Brent crude oil rose above $80 per barrel, hitting a high point since August, as increased tensions in the Middle East sparked speculation about possible Israeli attacks on Iranian oil infrastructure.

The global benchmark Brent crude oil continued its upward trend from last week, climbing 3.7% on Monday. Speculation on how Israel might respond to an Iranian missile attack drove this significant rise.

US President Joe Biden said last Friday that he does not know when Israel will respond and stated, "I will consider other options beyond attacking oil fields".

"Anxiety is escalating," said Rebecca Babin, Senior Energy Trader at CIBC Private Wealth. "The longer the wait, the stronger the sense of fear."

WTI also surged by 3.7%, surpassing $77 per barrel.

Tensions remain high in the Middle East as Hamas launched a series of rockets towards Tel Aviv, while Israel re-deployed troops to northern Gaza over the weekend and continued airstrikes and limited ground operations in Lebanon.

Goldman Sachs pointed out in a report that if Iranian crude oil exports are disrupted, Brent oil prices could rise to the $90 range.

After the unexpectedly strong US job report released last Friday, global markets are reassessing the prospects of a Federal Reserve interest rate cut.

Traders do not expect a further 50 basis point rate cut this year, and anticipate that the USA economy will continue to grow and bring inflation pressure, resulting in almost no room for further rate cuts.

Investors remain vigilant about potential supply disruptions that Hurricane Milton may cause, prompting Chevron to evacuate personnel from a platform and shut down production on Monday.

"The market severely lacks investors willing to 'take on risk' because most traders have had a tough year and are unwilling to bear significant volatility risks as the year-end approaches," said Scott Shelton, energy expert at TC ICAP.

Brent crude oil futures for December delivery rose 3.7%, settling at $80.93 per barrel.

WTI crude oil futures for November delivery increased by 3.7%, settling at $77.14 per barrel.