Oil prices rose more than $2 a barrel on Monday after Israel launched renewed strikes on Lebanon, weakening hopes for a wider Middle East de-escalation and renewed crude flows through the Strait of Hormuz.
US crude futures climbed $2.10, or 2.32%, to $92.64 a barrel at 0013 GMT, or 5:13am PKT. Brent crude futures rose $2.33, or 2.5%, to $95.42 a barrel.
The gains erased most of Friday’s losses, when crude prices fell on expectations that the US-Iran conflict could ease. The conflict began after US and Israeli strikes on Iran in February.
The latest Israeli strikes created another obstacle to a possible US-Iran peace deal and the reopening of the Strait of Hormuz. Iran has linked any agreement with Washington to a ceasefire involving Lebanon.
Iran retaliated for the Beirut strikes on Hezbollah, its Lebanese ally, by launching missiles at Israel. US President Donald Trump said he would tell Israeli Prime Minister Benjamin Netanyahu not to respond militarily against Iran.
Israel invaded Lebanon in March after Iran-backed Hezbollah fired rockets and drones across the border. Lebanon and Israel said on June 3 that they had agreed to a ceasefire after talks in Washington.
Read: Iran Missiles Israel After Strikes Near Beirut
OPEC+ agreed on Sunday to its fourth oil output increase in four months. Analysts said the move may have a limited effect because several members cannot meet targets due to the Hormuz disruption or, in Russia’s case, infrastructure attacks.
“In the current market, the physical impact of such a decision would be close to zero,” Rystad Energy head of geopolitical analysis Jorge Leon said in a note.
