RIO DE JANEIRO, June 23 (Reuters) -

Brazil's Petrobras is closely monitoring

geopolitical tensions in the Middle East, which have pushed

global oil prices higher in recent weeks, but does not plan to

tweak domestic fuel prices for now, two company sources told

Reuters on Monday.

The sources, speaking on condition of anonymity, said that

the state-run oil giant is waiting for a sustained shift in

Brent crude prices before considering any price changes.

Global benchmark Brent prices oscillated on Monday,

touching a five-month high before falling 1% to $76.31 a barrel

as markets tried to gauge the impact on transit of oil and gas

via the Strait of Hormuz after U.S. airstrikes against Iran.

"Everyone is concerned about the geopolitical

situation," one of the sources said. "But with our pricing

policy, we've removed the need to react to short-term

volatility. We don't need to rush into making price tweaks."

If Brent prices rise and stand above $80 for an extended

period, a tweak may be needed, one source noted. The other added

that current prices were largely driven by political tensions

and could fall back to around $65 if the situation eases.

Petrobras declined to comment.

The firm in 2023 ditched a more market-based pricing

policy in favor of one that gave it more flexibility to smooth

out price swings, while still taking into account factors such

as global crude prices and the foreign-exchange rate.