Oil prices rose more than 2% in early trading on Monday (June 1, 2026) 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. U.S. ​crude futures rose $2.17 or 2.48% to $89.53 a barrel as of ⁠1112 GMT. Brent futures rose $1.93 or 2.12% to $93.05 a barrel.

West Asia war: Follow LIVE updates on June 1, 2026

The stepped-up fighting, coming just after the U.S. hosted Israeli-Lebanon peace talks in Washington on Friday (May 29, 2026), ‌dimmed expectations that the U.S. and Iran could soon announce an extension to their ceasefire agreement, which had driven Brent and ‌WTI to settle up 1.8% and 1.7%, respectively, on ‌Friday (May 29, 2026).

The ⁠Israel-Lebanon conflict has been the broadest spillover of the Iran ⁠war. It started on March 2 when Hezbollah began firing rockets and drones across the border into Israel to back its ally Iran.

The two sides reached a ceasefire ​in mid-April but have continued to ‌trade fire.

U.S. President Donald Trump said on Friday that he would soon decide on a proposed deal to extend a ceasefire with Iran announced in early April, giving negotiators more time to seek ‌a permanent end to the conflict and find a solution ​to the underlying dispute over Iran’s nuclear program. Israel would be key to any such deal, and Iran has also ⁠said repeatedly that Hezbollah must be included.

Meanwhile, concerns are rising about mines in key oil and gas shipping lane the Strait of Hormuz, IG ‌analyst Tony Sycamore said in a note. That could slow the process of reopening the strait and mean that relief comes more slowly for the oil market even after it is reopened.

“Even if an agreement is reached, it won’t deliver a flood of supply,” Sycamore said.

An Axios reporter said on X on Friday (May 29, 2026) that Iran had dropped more ‌mines in the strait earlier in the week, shortly after U.S. Defense Secretary ​Pete Hegseth said that attempts to lay more mines would be a violation of the ceasefire.

Hormuz is a conduit ⁠for about a fifth of global oil and gas flows and Iran has ⁠effectively closed it since the conflict began with U.S. and Israeli strikes in February.

Concerns over supply outweighed lacklustre economic ‌data from China over the weekend, which showed stalling factory activity. This added to concerns the world’s second-largest economy is losing momentum, weighed ​down by a contraction in exports and cost pressures.

Israeli strikes on southern Lebanon killed at least one person and wounded four rescuers on Sunday (May 3, 2026), the Lebanese health ministry said, as Israel maintained its attacks on the country despite a fragile truce in its war with Hezbollah.

In separate statements, the ministry said the a strike on Arabsalim killed at least one person and wounded three, including a child, and another strike on Srifa wounded five people including four rescuers from the Hezbollah-affiliated Islamic Health Committee, as the strike hit near one of their centres.

U.S. President Donald Trump on Thursday (April 16, 2026) announced a 10-day ceasefire between Israel and Lebanon effective from midnight.

“I just had excellent conversations with the Highly Respected President Joseph Aoun, of Lebanon, and Prime Minister Bibi Netanyahu, of Israel. These two Leaders have agreed that in order to achieve PEACE between their Countries, they will formally begin a 10-day ceasefire at 5 p.m. EST,” Mr. Trump wrote in a social media post.