Oil prices fell nearly 2% on Monday after Israeli officials expressed a desire to avoid escalating tensions in the Middle East while responding to a deadly rocket attack on the Israeli-occupied Golan Heights over the weekend.
Brent crude for September delivery closed the first trading day of the week at $79.78 a barrel, down $1.35, or 1.7%. Meanwhile, U.S. oil finished at $75.81 a barrel, falling $1.35, or 1.8%.
Two Israeli officials informed Reuters on Monday that Israel aims to target the Lebanese group Hezbollah, which it holds responsible for Saturday’s attack that resulted in the deaths of 12 children and teenagers, while seeking to prevent a broader conflict.
Last week, Brent and U.S. crude prices declined by 1.8% and 3.7%, respectively, driven by reduced demand from China and increasing hopes for a ceasefire deal in Gaza.
