Global oil prices rise again

Global crude oil prices climbed more than 2 per cent on Monday (June 1) as renewed military escalation in the Middle East heightened concerns over potential supply disruptions.

According to a Reuters report, increased Israeli military operations in Lebanon and intensified clashes with Hezbollah have raised fears of a broader regional conflict, pushing energy markets higher.

Brent crude rose by $2.16, or 2.37 per cent, to $93.28 per barrel, while US West Texas Intermediate (WTI) crude gained $2.37, or 2.71 per cent, to reach $89.73 per barrel.

Market analysts said concerns over widening hostilities and uncertainty surrounding ceasefire dynamics in the region have contributed to the rally in oil prices, with traders pricing in potential risks to supply routes.

Tensions have further intensified following renewed cross-border attacks involving Hezbollah, backed by Iran, and Israeli forces. The situation has been described by military analysts as one of the most significant regional escalations linked to the broader Iran-related conflict landscape.

Additional market pressure stems from growing uncertainty around key shipping lanes, including the Strait of Hormuz, where reports of possible disruptions have heightened global supply concerns.

Analyst Tony Sycamore noted in a market briefing that restoring full confidence in maritime routes could take time, limiting any near-term easing in oil prices.

He added that even with potential diplomatic progress, a rapid increase in global oil supply appears unlikely.