Oil prices climbed by more than $4 per barrel (bbl) on Monday 8 June following renewed Israeli strikes on Iran and attacks on Lebanon, triggering concerns among investors over the stability of supply from the Middle East.
As of 06:09 GMT, Brent crude was trading at $97.15/bbl, up $4.42, or 4.47%, compared to the previous trading session’s closing price
Meanwhile, US crude rose by $4.07, or 4.50%, to $94.61/bbl, reported Reuters. The increase in prices comes after Israel confirmed on Monday that it had targeted a petrochemical plant in south-west Iran as well as hitting other military locations. This marks the first strike on an Iranian energy facility since the ceasefire agreed on 8 April.
Tensions in the region have escalated, with hopes fading for a resolution to the broader conflict and a resumption of normal crude shipments through the Strait of Hormuz. The strait is a key transit route for around 20% of global oil and liquefied natural gas (LNG). Oil prices, which had dropped on Friday in anticipation of easing tensions, have jumped by nearly 60% since late February.