Brent Crude Rises as Middle East Tensions Escalate
The price of Brent crude oil rose by 0.5% on Monday as traders assessed risks ahead of the official end of the ceasefire between the US and Iran, which was expected to conclude on the same day.
Israel's strikes on Lebanon, including a strike that killed 11 people, including a senior commander of 'Hezbollah', added to geopolitical uncertainty in the Middle East. Washington is preparing a plan for Iran's economic isolation, while negotiations over the Strait of Hormuz remain deadlocked.
The relative absence of military activity in the region has reduced volatility on the periphery, but markets are still reacting to ongoing tensions. The US dollar fell to its lowest level since May as expectations of a Federal Reserve interest-rate hike in September diminished.