Crude Oil Prices Jump Over 3% As Iran-Israel Exchange Fire For First Time Since April

Crude oil prices jumped more than 3 percent on Monday after Israel conducted renewed strikes on Lebanon, despite a ceasefire agreed on June 3.

US crude futures rose 4.26 percent to $94.40 per barrel, while Brent crude futures increased 3.82 percent to $96.65 per barrel.

The latest Israeli actions weakened market sentiment, reducing expectations of a US-Iran agreement and the reopening of the Strait of Hormuz, a critical global oil route.

Iran had linked the Lebanon ceasefire to progress in diplomatic talks with Washington.

Iran responded with missile strikes targeting Israel, in retaliation for the Beirut attack on its ally Hezbollah.

Israel said that all the missiles were intercepted and there were no casualties

US President Donald Trump said he would urge Israeli Prime Minister Benjamin Netanyahu to avoid retaliatory action against Iran.

Trump said he planned to call Netanyahu and urge Israel not to retaliate, saying, “Each of them had their fun. Israel had its strike, and Iran had its strike. We don’t need another one”.

Iran has maintained that cessation of Israeli aggression against Lebanon is its one of the core demands for a peace deal with the United States.

Last week, Israel and Lebanon agreed for a Washington-mediated ceasefire which had raised hopes of a breakthrough in peace talks between Iran and the United States.

After the Israel-Lebanon ceasefire agreement, Iran’s Foreign Minister Abbas Araghchi had warned that any Israeli attack on Lebanon’s capital, Beirut, would “lead to a full resumption of war”.

Although the US and Israel suspended attacks on Iran in early April, Tehran continues to restrict significant shipping through the Strait of Hormuz.

According to experts, the crude oil supply may not resume to its pre-war level even if the peace deal is brokered.

Meanwhile, OPEC agreed to raise oil production quotas by 188,000 barrels per day for July, aiming to support market stability.