Global energy executives gathered in the Malaysian capital on Monday for an industry conference with an eye on the dramatic escalation in the conflict between Israel and Iran, which has fuelled worries that it could widen and disrupt supply.

Oil is likely to be supported by tensions in the Middle East, said Phillip Nova analyst Priyanka Sachdeva, noting that crude oil prices have surged over 18% in June.

The latest escalation in tensions in Iran has paved the way for the return of risk premiums on oil prices once again.

Oil prices rallied over 7% today after Israeli airstrikes on Iran. This elevated geopolitical uncertainty and requires the oil market to price in a larger risk premium for supply disruption.

Smoke billowed above fuel tanks in Tehran and gas plants on Iran’s south coast on Sunday as energy became the latest front line in its conflict with Israel. Iran’s creaking energy sector, starved of foreign investment for years by sanctions,

The Federal Reserve will release its June rate decision on Wednesday, with the market expecting the central bank to hold interest rates steady. Bank of America Securities senior US economist Stephen Juneau and Ritholtz Wealth Management chief market strategist Callie Cox join Morning Brief to discuss their expectations for the Fed meeting as geopolitical tensions in the Middle East rise.

Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

Rising Middle East tensions have driven oil prices higher, potentially boosting Texas Pacific Land's future earnings. Read why TPL stock is a hold for now.