Oil jumps 2% as Israel expands Lebanon offensive, rattling ceasefire hopes
The Sea Voyager crude oil tanker anchored off the Port of Long Beach in Long Beach, California, USA, on Thursday, May 7, 2026.
Tim Rue | Bloomberg | Getty Images
Oil prices rose on Monday after Israel ordered its troops to advance deeper into Lebanon; This renewed concerns that clashes with the Iran-backed Hezbollah group could threaten the fragile ceasefire between Washington and Tehran.
Brent crude futuresOil, the international benchmark, rose by 2.45 percent to $93.35 per barrel. West Texas Intermediate futures rose 2.8% to $89.78 a barrel.
The escalation in fighting following US-brokered Israel-Lebanon talks in Washington on Friday has dampened hopes that Washington and Tehran are moving closer to extending the ceasefire arrangement.
“Together with Defense Minister Yisrael Katz, I instructed the Israel Defense Forces to expand the maneuver in Lebanon,” Benjamin Netanyahu said. sunday said. The order came despite a ceasefire declared in April.
Goldman Sachs The bank stated that risks to Brent and WTI forecasts of $90 and $83 per barrel for the fourth quarter of 2026 remain “bilateral.” The bank warned that permanent supply disruptions in the Middle East could push prices higher, but weakening demand could create significant downside risks.
Goldman estimated that weak April oil retail sales data from China and Western Europe pointed to about 2 million barrels per day of downside risk to already weak demand forecasts.
