Global crude oil prices surged more than 2% on Monday as Israel intensified military operations in southern Lebanon against Hezbollah, raising fears of supply disruptions in the Middle East.
Brent crude futures climbed $2.16, or 2.37%, to $93.28 a barrel, while U.S. WTI crude rose $2.37, or 2.71%, to $89.73 a barrel in early trading.
The price spike followed Israel’s deepest incursion into Lebanon since 2000, including the capture of Beaufort Castle, despite a ceasefire announced six weeks ago. Analysts warned the escalation could destabilize regional energy flows.
Concerns centered on the Strait of Hormuz, a vital route for nearly 20% of global oil and gas shipments. Reports of mines and blockages in the strait have heightened fears of prolonged supply disruptions.
The conflict is seen as the broadest spillover of the Iran war, with Hezbollah backing Tehran through rocket and drone attacks. Traders remain cautious after U.S.-brokered peace talks in Washington failed to ease tensions.
Global energy markets are bracing for further volatility, with rising crude prices expected to intensify inflationary pressures worldwide, particularly in emerging economies such as India.
U.S. President Donald Trump said Iran “really wants to make a deal” and promised a good outcome, but negotiations remain stalled, leaving oil prices vulnerable to further spikes.
