Oil gains as hopes of a ceasefire deal fade

In another unprecedented escalation of the Middle Eastern conflict, Iran-aligned Hezbollah armed group launched over 150 drones and missiles toward Israel on Sunday, the Israel Defense Forces (IDF) said.

PHOTO: Flags of Iran and Israel. Getty Images

The attack is being deemed as the biggest move by the Lebanon-based group in the ten-month-old conflict so far, thereby removing all hopes of a US-mediated ceasefire deal in the Gaza Strip and once again putting oil supply from the region under threat.

The IDF has retaliated to this attack with drone and missile strikes into Lebanon, according to a statement on social media platform X (formerly Twitter).

“Approx. 100 IAF fighter jets struck and eliminated thousands of Hezbollah rocket launcher barrels, aimed for immediate fire toward northern and central Israel,” the IDF said. “More than 40 Hezbollah launch areas were struck,” it added.

Brent’s price has moved close to $80/bbl following the attack, as traders and market analysts have shifted focus on Iran’s involvement and a further escalation, as it would raise oil supply risks “more meaningfully,” two analysts from ING Bank said.

“A major exchange of strikes between Israel and Lebanon’s Hezbollah militants over the weekend also served as a prop, injecting a small risk premium into crude,” VANDA Insights’ founder and analyst Vandana Hari remarked.

By Aparupa Mazumder

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