Oil prices rose on Monday, paring last week’s loss, on fears of a widening conflict in the Middle East following a rocket strike in the Israeli-occupied Golan Heights, which Israel and the United States blamed on Lebanese armed group Hezbollah.
Brent crude futures gained 33 cents, or 0.4%, to $81.46 a barrel at 0425 GMT. U.S. West Texas Intermediate (WTI) crude futures climbed 23 cents, or 0.3%, to $77.39 a barrel.
Last week, Brent lost 1.8% while WTI fell 3.7% on sagging Chinese demand and hopes of a Gaza ceasefire agreement.
On Sunday, Israel’s security cabinet authorised Prime Minister Benjamin Netanyahu’s government to decide on the “manner and timing” of a response to the Saturday’s rocket strike in the Golan Heights that killed 12 teenagers and children. Iran-backed Hezbollah denied responsibility for the attack, the deadliest in Israel or Israeli-annexed territory since Palestinian militant group Hamas’ Oct. 7 assault sparked the war in Gaza.
That conflict has spread to several fronts and risks spilling into a wider regional conflict. Israel has vowed retaliation against Hezbollah in Lebanon, and Israeli jets hit targets in southern Lebanon on Sunday.
