Oil prices rose in Asian trade on Monday, extending a recent rally after an intensifying conflict between Israel and Iran ramped up concerns over supply disruptions in the Middle East.
But prices traded below a 4-½ month high hit on Friday in the immediate aftermath of Israeli attacks against Iran. Tehran retaliated with a series of missile strikes over the weekend.
Brent oil futures for August rose 0.5% to $74.59 a barrel, while West Texas Intermediate crude futures rose 0.6% to $71.66 a barrel by 21:01 ET (01:01 GMT).
Israel-Iran conflict worsens, US intervention eyed
Israel and Iran launched a volley of strikes against each other over the weekend, with leaders from both sides signaling little intent to deescalate.
Israel had first struck Tehran on Friday, and was also seen attacking Iran’s nuclear facilities. Tehran retaliated with missile strikes against major Israeli cities, with several missiles seen hitting Tel Aviv.
The latest conflict pushed up bets on more restrictions on Iranian oil, and also sparked concerns over disruptions in the Strait of Hormuz, which is a major shipping channel for Asia and Europe.
Focus was now squarely on whether the U.S. will intervene in the conflict. President Donald Trump said that efforts were being made to reach a ceasefire, but that Israel and Iran may have to “fight it out” before a deal could be reached.
