Key facts
- Oil prices rose over 3% due to escalating Middle East conflict.
- Israel ordered troops to move further into Lebanon to battle Hezbollah.
- U.S. crude futures rose 3.3% to $90.24 a barrel.
- Brent futures rose 2.25% to $93.17 a barrel.
- Iran reportedly ordered the Strait of Hormuz blocked.
- Iran has shut down communications with the US through mediators.
The escalation of conflict between Israel and Hezbollah in Lebanon has directly impacted oil prices. The expansion of Israeli ground operations into Lebanon has raised concerns about regional stability and potential disruptions to oil supply routes, reversing a recent downward trend driven by hopes for a U.S.-Iran ceasefire. The situation has been further complicated by reports that Iran has halted negotiations with the U.S. and plans to block the Strait of Hormuz.