• As a result of Israeli attacks, Iran said it will completely block the Strait of Hormuz, restricting about 20% of global oil flow.
• Israeli Prime Minister Benjamin Netanyahu on Sunday ordered his troops to attack Lebanon, citing repeated ceasefire violations by Hezbollah.
• Earlier in the day, President Donald Trump said that Iran was serious about making a peace deal.

Oil prices surged Monday morning after Iran said it has suspended negotiations with the U.S. following Israel’s attacks in Lebanon targeting regions controlled by Hezbollah. 

Brent crude futures maturing in August traded up more than 7%, at around $97.58 a barrel, while WTI crude futures maturing in August were 7.3% higher, trading at $91.52 a barrel at the time of writing.

“Given the continuation of the Israeli regime’s attacks in Lebanon, and considering that Lebanon had been one of the preconditions for a ceasefire — which has now been violated on all fronts, including Lebanon — the Iranian negotiating team is suspending ‘talks and exchanges of texts through mediators,’” Iranian news agency Tasnim reported.

Iran To Block Strait Of Hormuz

The latest development in the ongoing war raises further uncertainty and adds to geopolitical instability, undoing weeks of negotiations towards a U.S.-brokered peace agreement. Iran said Monday it will completely block the Strait of Hormuz, choking off about 20% of global oil flow.

Israeli Prime Minister Benjamin Netanyahu on Sunday ordered his troops to attack the southern suburbs of Beirut, known as Dahiyeh, citing repeated ceasefire violations by Hezbollah, according to a statement from his official X account. Iran, in response, launched two ballistic missiles against American forces in Kuwait, which were intercepted.

Trump Says Iran Wants To Make A Deal

On Monday morning, President Donald Trump stated on Truth Social that Iran was serious about making a deal as he lambasted Democrats and some Republicans over their criticism of his administration’s handling of the Middle East situation.

ProShares Ultra Bloomberg Crude Oil ETF (UCO) has more than doubled so far this year, while United States Oil Fund LP ETF (USO) has risen more than 98% for the same period.

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