Global oil prices climbed sharply after Israel expanded its military operations in Lebanon, intensifying concerns over potential disruptions to energy supplies and adding fresh volatility to international markets.
According to Reuters, U.S. West Texas Intermediate (WTI) crude rose 2.71 percent to $89.73 per barrel, while Brent crude gained 2.37 percent to reach $93.28 per barrel.
Market analysts said Israel’s decision to intensify military action against Hezbollah and the widening conflict along the border have heightened fears of supply risks among investors.
Although negotiations between Israel and Lebanon were held last week with U.S. mediation, the talks failed to produce any significant breakthrough. Renewed hostilities have instead raised concerns about regional stability and the potential impact on global energy flows.
Experts also pointed to growing concerns surrounding the Strait of Hormuz, through which nearly 20 percent of the world’s oil and gas trade passes. Any disruption in this strategic waterway could have far-reaching consequences for global energy supplies.
While signs of slower industrial production and exports in China have weighed on demand expectations, geopolitical risks in the Middle East have emerged as the dominant factor driving market sentiment.
Source: Reuters