Oil Prices Rise Sharply, Iran Launch Hits Peace Hopes
Oil prices surged on Monday after Israel launched another attack on Lebanon, sparking fears of a new escalation in the Middle East.
Sentiment intensified after local media reported explosions heard in several Iranian cities, including Tehran, Tabriz, and Isfahan. This development eroded market hopes for a swift de-escalation and a return to oil flows.
At 03:33 GMT, Brent rose US$3.20 (3.39%) to US$96.24/barrel, while WTI rose US$2.87 (3.17%) to US$93.41/barrel.
These gains reached their lowest point on Friday, when prices briefly fell on optimism that the US-Iran conflict could ease. Since March, oil prices have risen more than 50% as the supply crisis worsened.
Despite Iran firing missiles at targets in Israel on Sunday in retaliation, US President Donald Trump insisted a deal to end the wider war was still “within reach.” Trump also reportedly asked Israeli Prime Minister Benjamin Netanyahu to refrain from further attacks, saying the pressure would have "no impact" on the chances of a deal.
Iran has made a ceasefire in Lebanon a key condition of its peace agreement with Washington. Israel itself entered Lebanon in March after the Iranian-backed Hezbollah armed group fired rockets and drones across the border. Lebanon and Israel agreed to a ceasefire on June 3 after talks in Washington, but repeated violence suggests the truce remains fragile.
The supply crisis remains centered on the Strait of Hormuz, a key artery for about a fifth of the world's oil supply, where flows are restricted by Iranian actions and the US blockade of Iranian ports. OPEC+ did agree to another increase in production quotas, but analysts believe the physical impact will be minimal because many members are unable to increase production amid export disruptions and attacks on infrastructure (including Russia). (asd)
Source: Newsmaker.id
