Global crude oil prices rose more than two percent in early trading today after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.
US crude futures rose 2.37 US Dollar or 2.71 percent to 89.73 US Dollar a barrel while Brent futures rose 2.16 US Dollar or 2.37 percent to 93.28 US Dollar a barrel when reports last came in.
Back home, crude oil prices on Multi Commodity Exchange (MCX) also witnessed a similar upward movement. MCX crude oil prices rose as much as 3.15% to ₹8,542 per barrel.
The escalation, occurring shortly after the US hosted Israel-Lebanon peace negotiations in Washington on Friday, dampened hopes that Washington and Tehran would soon announce an extension of their ceasefire agreement. Those expectations had helped push Brent and WTI crude prices lower by 1.8% and 1.7%, respectively, at Friday’s close.