Middle East Tensions Push Oil Prices Higher

Oil prices edged higher on Monday as tensions in the Middle East continue to weigh on markets. Brent crude rose by 0.5% in early Asia trading, while the US dollar remained relatively unchanged against major peers.

The increase comes amid renewed Israeli attacks on Lebanon and the threat of fresh US sanctions on Iran ahead of the formal end of their ceasefire agreement on Monday.

Israel's prime minister, Benjamin Netanyahu, said the strikes were in retaliation for a Hezbollah attack that injured three soldiers. The fighting may further complicate already deadlocked negotiations between Washington and Tehran.