Oil jumps over 3% on Monday

Oil prices rose more than 3 per cent on Monday after renewed Israeli strikes on Lebanon and reports of explosions in several Iranian cities heightened concerns over a prolonged regional conflict and potential disruptions to oil supplies through the Strait of Hormuz.

Brent crude futures gained $3.20 to $96.24 a barrel, while US West Texas Intermediate crude rose $2.87 to $93.41 a barrel by 0333 GMT. The gains reversed losses recorded on Friday, when hopes of a de-escalation in the US-Iran conflict had weighed on prices.

Market concerns intensified after local media reported explosions in Tehran, Tabriz, and Isfahan, raising doubts about prospects for a near-term peace agreement and the resumption of normal crude flows through the Strait of Hormuz, a key route for around one-fifth of global oil shipments.

Meanwhile, OPEC+ agreed on Sunday to raise oil production for a fourth consecutive month. However, analysts said the move would have a limited impact on supply as several producers remain unable to meet output targets due to disruptions linked to the regional conflict and infrastructure constraints.

Attribution: Reuters