Global oil prices recovered Monday after dropping more than 5%, as traders balanced concerns about Middle Eastern supply disruptions against potential increases in crude availability. Brent crude and West Texas Intermediate both saw significant volatility amid shifting sentiment about geopolitical risks and production capacity.

Investors closely watched developments in the Middle East, where escalating tensions threatened to disrupt oil shipping lanes and production facilities. The region's instability historically creates uncertainty about global supply chains, prompting markets to price in potential disruptions before they materialize.

At the same time, market participants noted signals suggesting more crude could enter the market from various sources, potentially alleviating tight supply conditions. This counterbalancing factor helped limit oil's rebound as traders weighed conflicting indicators about future supply-demand dynamics.

The oil market's rapid swings reflected the balancing act investors performed as they assessed Middle Eastern supply threats against potential increases in crude availability.