Oil prices climb 2% as US-Iran trade fresh strikes

Global oil markets recorded a significant jump on Monday, with crude prices climbing by more than 2% as escalating tensions in the Middle East raised concerns about potential disruptions to energy supplies. Market sentiment was affected by renewed military exchanges between the United States and Iran, as well as Israel’s decision to expand military operations in Lebanon against Hezbollah. By early trading, U.S. benchmark crude had gained $2.29 to reach $89.65 per barrel, while Brent crude advanced $2.05, trading at $93.17 per barrel. The latest escalation in regional hostilities came shortly after diplomatic discussions between Israeli and Lebanese representatives were held in Washington. The renewed violence has reduced investor confidence that Washington and Tehran will quickly agree on an extension of their existing ceasefire arrangement, contributing to upward pressure on oil prices. In a statement, US Central Command (CENTCOM) conducted self-defense strikes on Iranian radar and command and control sites for drones in Goruk, Iran and Qeshm Island this weekend. The measured and deliberate strikes occurred on Saturday and Sunday in response to aggressive Iranian actions that included the shootdown of a U.S. MQ-1 drone that was operating over international waters. U.S. fighter aircraft swiftly responded by eliminating Iranian air defenses, a ground control station, and two one-way attack drones that posed clear threats to ships transiting regional waters. No American service members were harmed. CENTCOM will continue to protect U.S. assets and interests in response to unwarranted Iranian aggression during the ongoing ceasefire.