Oil prices surged more than US$2 a barrel in early Asian trading on Monday after Israel launched air strikes on the Beirut area, marking the first such attack since the US announced a ceasefire plan for Lebanon and reigniting concerns over geopolitical risks in the Middle East.
Brent crude futures climbed US$2.67, or 2.9%, to US$95.76 a barrel, while US West Texas Intermediate (WTI) crude rose US$2.57, or 2.8%, to US$93.11 a barrel.
The gains came after Israel carried out strikes near Beirut on Sunday, raising fears of renewed instability in a region that remains critical to global energy supplies.
The latest escalation adds to growing uncertainty in oil markets, which have been closely monitoring developments across the Middle East amid concerns that broader conflict could disrupt supply routes and energy infrastructure.
The rebound in crude prices follows a volatile period for global markets, with investors balancing geopolitical risks against concerns over economic growth and demand.
Higher oil prices could also weigh on investor sentiment across Asia this week. Reuters reported that Asian markets were poised for losses on Monday after a technology-led sell-off on Wall Street ended a nine-week winning streak, while the renewed tensions in Lebanon boosted demand for the US dollar and safe-haven assets.
Market participants are expected to continue monitoring developments in the Middle East, particularly any impact on regional stability and global energy flows, as oil prices remain sensitive to geopolitical events.
Analysts said sustained escalation could keep crude prices elevated in the near term, although attention will also remain on supply decisions by major producers and the broader demand outlook.
Reuters
