Oil prices rose more than 2% in early trading on Monday after Israel ordered the deployment of additional forces in southern Lebanon, escalating tensions with the Iran-backed Hezbollah group despite a ceasefire announced more than six weeks ago.Reuters reported that US crude futures (WTI) rose 2.71% to $89.73 per barrel, while Brent crude futures rose 2.37% to $93.28 per barrel.The sharp rise in prices came as renewed fighting raised fears that efforts to extend the ceasefire between the United States and Iran could face new complications. This development dampened hopes for a broader easing of tensions in the region, which helped push oil prices lower at the end of last week.
The latest escalation comes after peace talks hosted by the United States between Israeli and Lebanese representatives in Washington on Friday. However, Israel’s decision to intensify military operations in Lebanon has increased uncertainty about the future of the ceasefire and broader regional stability.The conflict between Israel and Hezbollah has emerged as the most significant extension of the ongoing war with Iran. Hostilities began on March 2 when Hezbollah launched missiles and drones into Israel in support of Iran.
Although the two sides agreed to a ceasefire in mid-April, intermittent exchanges of fire continued.US President Donald Trump said on Friday that a decision on extending the ceasefire agreement with Iran will be made soon, giving negotiators additional time to reach a permanent settlement and address disputes surrounding Tehran’s nuclear program.Any long-term agreement is expected to include Israel, while Iran has repeatedly insisted that Hezbollah must also be part of any broader arrangement.At the same time, concerns about global energy supplies have increased due to reports of mines being laid in the Strait of Hormuz, one of the world’s most important oil and gas shipping routes.According to market analysts, the possibility of further disruptions in the strait could slow efforts to fully restore shipping traffic, limiting the pace of the return of additional oil supplies to global markets.The Strait of Hormuz remains a strategic waterway carrying nearly a fifth of global oil and gas flows. Iran has effectively restricted access to the strategic waterway since the conflict began following US and Israeli strikes in February.
Do you think the ceasefire between Israel and Hezbollah will hold in the coming weeks?