Crude oil prices surged over 3% on Monday following renewed Israeli strikes on Lebanon, which heightened tensions in the Middle East. US crude futures rose 4.26% to $94.40 per barrel, while Brent crude futures increased 3.82% to $96.65 a barrel, reflecting market concerns about the conflict's impact on oil supply, according to livemint.com.
The escalation came despite a truce between Israel and Lebanon, with the renewed attacks undermining hopes for a resolution to the broader US-Iran conflict. The strikes also raised fears about disruptions to crude flows through the Strait of Hormuz, a critical chokepoint for global oil shipments. Market participants reacted swiftly, pushing prices higher amid uncertainty over regional stability, livemint.com reported.
This price jump underscores the sensitivity of global oil markets to geopolitical developments in the Middle East, a region that supplies a significant portion of the world's crude. The recent rally follows a period of volatility driven by concerns over US-Iran tensions and potential supply interruptions. Brent crude's rise above $96 a barrel highlights the premium investors are placing on security risks in key oil transit routes, livemint.com noted.
Brent crude futures closed at $96.65 per barrel on Monday, marking a 3.82% gain, while US crude futures ended the session at $94.40 per barrel, up 4.26%, according to livemint.com.