Oil prices extended gains on Monday due to political instability in key oil-producing nations following the death of Iran’s president in a helicopter crash and Saudi Arabia’s crown prince canceling a trip to Japan due to the king’s health issues.

Brent crude increased by 41 cents, or 0.5 percent, to $84.39 per barrel by 0632 GMT, reaching $84.43, its highest level since May 10. Similarly, U.S. West Texas Intermediate (WTI) crude for June rose by 23 cents to $80.29 per barrel after peaking at $80.35, the highest since May 1. 

The June contract expires on Tuesday, with the more actively traded July contract rising by 31 cents, or 0.4 percent, to $79.89.

Iranian President Ebrahim Raisi, a prominent hardliner and potential successor to Supreme Leader Ayatollah Ali Khamenei, was killed in a helicopter crash in mountainous terrain near the Azerbaijan border, according to officials and state media on Monday. 

This incident has introduced a new layer of uncertainty in the global oil market.

In a separate development, Saudi Crown Prince Mohammed bin Salman postponed his visit to Japan, which was set to start on Monday, due to health issues affecting his father, King Salman. 

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi confirmed that King Salman, aged 88, is undergoing treatment for lung inflammation.

Sycamore also noted that recent measures in China aimed at stimulating the property market, including relaxed mortgage rules, lower deposits, and initiatives to purchase unsold homes, support the potential for further price increases.

Last week, Brent crude ended up about 1 percent, its first weekly gain in three weeks, while WTI rose 2 percent, buoyed by positive economic indicators from the U.S. and China, the world’s largest oil consumers.

Despite the political volatility, oil prices have remained relatively stable. 

The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, are scheduled to meet on June 1. Patterson pointed out that the market appears increasingly indifferent to geopolitical developments, likely due to the significant spare capacity held by OPEC.

Energy analyst Saul Kavonic of MST Marquee suggested that the market is already accustomed to Crown Prince Mohammed bin Salman’s leadership in the energy sector, indicating continuity in Saudi strategy despite the king’s health issues.

In the U.S., the government capitalized on the recent drop in oil prices, announcing that it had purchased 3.3 million barrels of oil at $79.38 per barrel to help replenish the Strategic Petroleum Reserve after a substantial sale from the stockpile in 2022.