These developments follow attacks on several tankers and other vessels in the context of US-Iran escalation, reflected in shipping activity through one of the world's most important global energy trade routes.
In southern Lebanon, the Israeli military issued orders early Monday to residents of the town of Deir al-Zahrani to evacuate buildings it said were located near Hezbollah facilities, before carrying out airstrikes in the area. Israel stated it conducted these strikes in response to the launch of two drones by Hezbollah at its forces in the "security zone" it controls in southern Lebanon, which it views as a ceasefire violation.
In the West Bank, the Palestinian Ministry of Health announced the death of a Palestinian youth and injuries to two others in an incident that occurred in the village of Hajah on the night between Sunday and Monday, attributing the incident to Israeli settlers. In Gaza, Palestinian medical sources reported the death of a child from artillery bombing that targeted a school housing refugees in Deir al-Balah in central Gaza Strip.
Oil prices continued to rise with growing concerns over prolonged disruptions to Middle Eastern supplies due to retaliatory attacks between the United States and Iran against vessels in the Strait of Hormuz and other areas. Brent futures rose 52 cents or 0.54 per cent to $96.80 per barrel, while American West Texas Intermediate crude rose 66 cents or 0.72 per cent to $92.14 per barrel.
Goldman Sachs Group estimated oil prices could rise to $120 per barrel if attacks on Middle Eastern shipping continue to escalate. The banking group recommended betting on natural gas and diesel to capitalise on the potential for price increases. Goldman Sachs' global commodity research official said developments over the past few days indicate that the risk of more widespread and severe shipping disruptions is an important factor to consider.
