Oil prices rise after exchange of attacks between US and Iran

Lebanese flee after Israel warns of new attacks on Beirut
Oil prices rose more than $4 per barrel on Monday (1st), after Iran and the US exchanged attacks and Israel ordered troops to advance further into Lebanon in its battle against the Tehran-backed Hezbollah militant group.
🔎 Brent futures rose $4.7, or almost 5%, to $ 95.65 per barrel, around 10:45 am (Brasília time). U.S.-traded oil futures rose about $5, or 5.77%, to $92.36 per barrel.
In May, Brent and WTI lost about 19% and 17%, respectively. It was the biggest monthly drop for both contracts in absolute terms since March 2020, when the Covid-19 pandemic reduced energy demand.
Fighting in the Middle East, after Washington hosted peace talks between Israel and Lebanon on Friday (29), dampened hopes that the US and Iran could soon announce an extension of their ceasefire.
US President Donald Trump said on Friday he would soon decide on a deal proposed to extend the ceasefire announced in early April.
Israel would be central to any such agreement, and Iran has repeatedly said that Hezbollah and Lebanon must be included. The US has proposed a "gradual de-escalation" plan, a US official said on Sunday.
Concerns are growing about mines in the Strait of Hormuz, a key oil and gas shipping route, IG analyst Tony Sycamore said in a note. "Even if a deal is reached, it will not generate a flood of supplies," Sycamore said.
An Axios reporter said on from Israel to Lebanon.
Supply concerns outweighed weekend economic data from China, which showed stagnant factory activity. That has raised concerns that the world's second-largest economy is losing steam.
Saudi Arabia is likely to cut its official selling prices (OSPs) for crude oil to Asia in July for a second month, according to a Reuters poll.
Goldman Sachs said on Sunday that weak oil demand in China and Europe poses a major downside risk to its fourth-quarter Brent crude forecast of $90 per barrel and WTI forecast of $83, although disruptions in the supplies from the Middle East could still drive up prices.
Oil pumps, Iran, Middle East
Reuters

Source: G1