Oil prices rise as military action flares in Middle East over weekend
Oil prices surged over 4% on Monday after escalating military strikes between Israel and Iran, including Israel’s attack on a petrochemical plant in Iran and Iran’s retaliatory missile launches, disrupting ceasefire negotiations. The conflict, involving Hezbollah in Lebanon, has strained U.S. diplomatic efforts and threatened oil supply routes through the Strait of Hormuz, with former President Trump claiming progress toward a ceasefire while criticizing Israeli actions.
Oil prices jumped over 4% on Monday, with Brent crude trading above $97 per barrel and WTI nearing $95, following a weekend of heightened military exchanges between Israel and Iran. The escalation began when Israel launched airstrikes in Beirut targeting Iran-backed Hezbollah, followed by Iran intercepting Israeli missiles—marking the first direct air engagement since a U.S.-brokered ceasefire on April 8. Israel later retaliated by striking a petrochemical plant in southwestern Iran, which it claimed was used for ballistic missile production, with National Security Minister Itamar Ben-Gvir vowing further action. Iran’s Revolutionary Guard Corps announced the end of its strikes but warned of "far more severe measures" if Israeli aggression continued, including attacks on U.S. bases in the region. Iranian negotiator Mohammad-Bagher Ghalibaf accused the U.S. of enabling Israel’s strikes and blocking the Strait of Hormuz, calling such actions a threat to regional stability. Meanwhile, former President Donald Trump intervened on social media, urging an immediate ceasefire and claiming negotiations were "very close," though he criticized Israeli Prime Minister Benjamin Netanyahu’s refusal to halt Lebanon operations. The conflict has derailed U.S. diplomatic efforts to end the broader war, as Iran insists any deal must include a halt to Israel’s campaign against Hezbollah. Netanyahu’s push for a ground offensive in Lebanon has repeatedly clashed with U.S. demands, with Trump asserting in a call with the *Financial Times* that he—not Netanyahu—controls the negotiations. The escalation also risks disrupting global oil supplies, as the Strait of Hormuz typically handles 14 million barrels per day, leaving markets vulnerable to further volatility. Israel’s strikes included targeted attacks on Hezbollah positions in Beirut, while Iran’s retaliatory missiles were intercepted by Israeli defenses. The weekend’s violence exposed deep divisions in the U.S.-led ceasefire talks, with Trump claiming progress but acknowledging potential setbacks. Iranian state media emphasized that further aggression would trigger "forceful" responses, signaling the conflict remains far from resolved.
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