On Monday, oil prices rose, regaining some of the ground lost last week. The increase was spurred by concerns over the potential expansion of conflict in the Middle East after a rocket attack on the Israeli-occupied Golan Heights. Israel and the United States blamed the Lebanese militant organization Hezbollah for the incident.
As of 0010 GMT, Brent crude futures were up 20 cents, or 0.3%, at $81.33 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 9 cents, or 0.1%, to $77.25 a barrel.
Last week, Brent crude fell 1.8%, while WTI dropped 3.7%, primarily due to weak demand from China and hopes for a ceasefire agreement in Gaza.
On Sunday, Israel's security cabinet authorized Prime Minister Benjamin Netanyahu's government to respond "in manner and timing" to the rocket attack on the Golan Heights on Saturday, which resulted in the death of 12 teenagers and children.
Hezbollah, which is backed by Iran, denied responsibility for the attack. This incident is the deadliest on Israeli or its affiliated territories since the conflict began on October 7, when Palestinian militant group Hamas launched an attack, triggering the Gaza war. The conflict has spread to multiple fronts, with the risk of escalating into a larger regional confrontation.
Israel has vowed to retaliate against Hezbollah in Lebanon, with Israeli jets bombing targets in southern Lebanon on Sunday.
Fujitomi Securities analyst Toshimitsu Tazawa stated, "The heightened tensions in the Middle East have sparked new buying, but persistent concerns over weak demand from China have capped the gains."
