Oil Prices Rise Over 2% as Israel Expands Lebanon Operations
Synopsis
Oil prices climbed more than 2% on Monday after Israel ordered troops to move further into Lebanon in its conflict with Hezbollah despite a ceasefire announced weeks earlier. Rising tensions in the Middle East increased concerns about global energy supply and pushed crude prices higher after sharp losses in the previous session.
Oil prices rose over 2% on Monday, as Israel deployed troops to advance further into Lebanon contrary to a ceasefire declared more than six weeks ago.
Key Highlights
- Oil prices increased more than 2%
- Israeli forces move deeper into Lebanon
- WTI crude 2.71% to $89.73 per barrel
- Brent crude rose 2.27% to $93.19 a barrel
- Oil prices fell on Friday before recovering on Monday.
Israel-Lebanon Tensions Push Oil Higher
Oil prices increased after Israel launched military operations against Hazebollah forces in Lebanon. US persists in calling for the end of hostilities, which has raised fears over increased tensions in the Middle-East with considerable effect to the world oil market. US Crude futures increased $2.37 or 2.71% a barrel early Monday. Brent crude futures increased $2.07 to $93.19 a barrel.
Friday’s Oil Decline Reverses
Friday's data followed another tumble in oil prices as fears the U.S. and Iran were nearing a ceasefire agreement drove crude down sharply. Brent crude fell 1.8 per cent and WTI crude fell 1.7 per cent following the last session. Increasing geopolitical tension in the region reversed oil prices from Friday as traders reacted to new clashes.
Markets Watching Middle East Developments
The geopolitical events in the Middle East have a key importance for the world oil markets so investors watch them nervously. Oil prices and market sentiment can flip each time something escalates in the conflict. But analysts caution that traders are still monitoring developments in Israel, as well Iran and ally Hezbollah, amid uncertainty.
FAQs
- Why did oil prices rise on Monday?
News that the Israeli army expanded operations into Lebanon caused Oil to increase.
- Brent crude rose how much?
It rose about 2.27% to $93.19 per barrel.
- Why are markets focused on the Middle East?
It is a key area for global oil and energy supply.
- Did oil prices fall on Friday?
Yes, due to hope for a U.S.-Iran ceasefire agreement pulled oil prices down.
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