Oil jumps over 2% as Israel strikes Beirut, raising fears of wider West Asia conflict – Firstpost

Global oil prices surged more than 2 per cent in early Asian trading on Monday after Israel launched strikes on the Beirut area for the first time since the United States announced a ceasefire framework for Lebanon, fuelling concerns that tensions in West Asia could escalate further and disrupt energy supplies.

Brent crude futures rose $2.26, or 2.43 per cent, to $95.35 a barrel, while US West Texas Intermediate (WTI) crude gained $2.02, or 2.23 per cent, to $92.56 a barrel in early trade.

The sharp move higher came after Israel carried out attacks on areas around Beirut on Sunday, marking a significant escalation in hostilities involving Lebanon and raising fears of a broader regional conflict involving Iran-backed groups.

Geopolitical tensions drive risk premium

Oil markets reacted swiftly as traders priced in a higher geopolitical risk premium amid concerns that any widening of the conflict could threaten shipping routes and energy infrastructure across the region.

The latest flare-up comes against the backdrop of increasing tensions between Iran, Israel and the United States. Iran’s Parliament Speaker and senior negotiator Mohammad Baqer Qalibaf warned on Sunday that US military installations and Israeli assets in the region could become targets following recent developments.

In a post on X, Qalibaf criticised what he described as a US naval blockade of Iran and Washington’s support for Israel’s military operations in Lebanon.

“They are neither committed to a ceasefire nor believe in dialogue, and through the naval blockade and violation of agreements regarding Lebanon they showed that they only understand the language of power,” he said in an apparent reference to the United States and Israel.

Concerns over supply disruptions

Although there has been no immediate impact on crude production or exports, traders remain sensitive to any developments that could affect energy flows from the region, which accounts for a significant share of global oil supply.

Market participants are particularly focused on the possibility of disruptions to shipping lanes and infrastructure should hostilities intensify further. Any direct confrontation involving Iran could raise concerns over traffic through key maritime routes used for global crude exports.

Analysts said the latest gains reflect growing uncertainty over the geopolitical outlook, with investors closely monitoring military developments and diplomatic efforts aimed at preventing a wider conflict.