Oil prices rise more than 3% on Monday

By Aya Anwar On Jun 1, 2026

Oil prices rose more than 3 per cent on Monday after the United States and Iran exchanged strikes and Israel ordered troops to advance further into Lebanon, heightening concerns over potential disruptions to global energy supplies.

Brent crude futures climbed $2.78, or 3.05 per cent, to $93.9 a barrel, while US West Texas Intermediate (WTI) crude gained $2.88, or 3.3 per cent, to $90.24 a barrel.

The gains followed US strikes on radar and drone control sites in Iran over the weekend and Iran’s retaliatory attack on a military air base, reducing expectations for a near-term extension of the US-Iran ceasefire.

Markets also focused on the Strait of Hormuz, which carries about one-fifth of global oil and gas flows, amid concerns that continued tensions could prolong supply disruptions despite diplomatic efforts to ease the conflict.

The geopolitical risks outweighed weak economic data from China, which showed slowing factory activity and reinforced concerns about weaker demand in the world’s second-largest economy.

Goldman Sachs said weak oil demand in China and Europe poses downside risks to its fourth-quarter Brent forecast of $90 a barrel and WTI forecast of $83 a barrel, although Middle East supply disruptions could continue to support prices.

Attribution: Reuters