Oil prices rise more than $2 on Israel strikes on Lebanon

Oil prices surged by over $2 a barrel following renewed Israeli strikes on Lebanon, despite a recent truce. This escalation in the Israel-Lebanon/Iran conflict, which began with U.S. and Israeli strikes on Iran, has eroded hopes for de-escalation and a restart of crude flows through the strategically vital Strait of Hormuz. Iran has made a ceasefire with Lebanon a condition for a peace deal with Washington. Amid the resulting supply crisis, OPEC+ agreed to increase oil output, but analysts believe this will have minimal physical impact due to the Hormuz closure and Russia's production issues.