Oil rises as US and Iran trade strikes, Israel moves further into Lebanon

Oil prices rose more than 2% on Monday after Iran and the US traded strikes and Israel ordered troops to move further into Lebanon in the battle with the Tehran-backed Hezbollah militant group. US crude futures rose $2.29 or 2.62% to $89.65 a barrel as of 0436 GMT. Brent futures rose $2.05 or 2.25% to $93.17 a barrel. The stepped-up fighting, coming just after the US hosted Israel-Lebanon peace talks in Washington on Friday, dimmed expectations that the US and Iran could soon announce an extension to their ceasefire agreement, which had driven Brent and WTI to settle down 1.8% and 1.7%, respectively, on Friday.