Oil prices rise over 2% as Israeli troop movements in Lebanon heighten supply disruption fears amid stalled ceasefire talks.
West Texas Intermediate crude trades around $88.80 per barrel, recovering from three consecutive sessions of losses. The gain follows Israel’s decision to advance troops deeper into Lebanon, escalating conflict with Hezbollah despite a six-week-old ceasefire agreement.
Market sentiment has soured as the latest military action undermines recent diplomatic efforts, including US-hosted peace talks in Washington. Uncertainty persists over a broader US-Iran ceasefire extension, with both sides exchanging revised proposals over the weekend without clear progress.
Supply concerns center on the Strait of Hormuz, a critical chokepoint for global oil shipments. The renewed hostilities dim prospects for a swift resolution, driving prices higher during Asian trading hours.