Oil prices rose 1% on Monday on renewed concerns that an escalating Gaza conflict could disrupt regional oil supplies, extending gains from Friday when the prospect of U.S. interest rate cuts lifted the global economic and fuel demand outlook, Reuters reported.
Brent crude futures climbed 79 cents, or 1%, to $79.81 a barrel by 0910 GMT, while U.S. crude futures were at $75.63 a barrel, up 80 cents, or 1.07%.
In one of the biggest clashes in more than 10 months of border warfare, Hezbollah fired hundreds of rockets and drones into Israel on Sunday, as Israel’s military said it struck Lebanon with around 100 jets to thwart a larger attack.
Both oil benchmarks gained more than 2% on Friday after U.S. Federal Reserve Chair Jerome Powell endorsed the start of interest rate cuts.
“The prospect of easing monetary policy boosted sentiment across the commodity complex,” ANZ analysts said in a note.
Investors remain cautious over the actions of the Organization of Petroleum Exporting Countries (OPEC) and its allies, or OPEC+, which has plans to raise output later this year, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
