Global oil prices climbed more than $2 a barrel on Monday after Israel launched renewed strikes on Lebanon on Sunday despite a truce between the two countries, eroding hopes for an end to the wider war and a restart of crude flows through the Strait of Hormuz.

US crude futures were up $2.10, or 2.32%, at $92.64 per barrel as of 00:13 GMT, while Brent crude futures rose $2.33, or 2.5%, to $95.42 a barrel — erasing most of Friday’s losses, when prices had fallen on mounting hopes of de-escalation in the US-Iran conflict that began with US and Israeli strikes on Iran in February.

The latest strikes appeared to present yet another barrier to a US-Iran peace deal and the reopening of the Strait of Hormuz, a key conduit for global oil and gas flows. Iran has made a parallel ceasefire with Lebanon a precondition for any deal with Washington.

Tehran retaliated for the Beirut strikes on its Hezbollah ally by launching missiles at Israel’s Ramat David Airbase. US President Donald Trump said he would tell Israeli Prime Minister Benjamin Netanyahu not to retaliate against Iran and that a US-Iran deal was “very close.” Israel had invaded Lebanon in March after Iran-backed Hezbollah fired rockets and drones across the border. Lebanon and Israel said on June 3 they had agreed to a ceasefire following negotiations in Washington — the second cessation of hostilities between the two sides after April’s failed truce.

The wider war has been on pause since the US and Israel halted their Iran attacks in early April, but Tehran continues to block most shipping through Hormuz. Amid the resulting supply crisis, OPEC+ on Sunday agreed its fourth oil-output increase in four months — but analysts said the decision would have little real impact since most OPEC+ members cannot meet their output targets because of the Hormuz closure or, in Russia’s case, infrastructure attacks that have eroded production capacity.

“In the current market, the physical impact of such a decision would be close to zero,” Rystad Energy head of geopolitical analysis Jorge Leon said in a note.

For Sri Lanka, the Brent jump back to $95 directly increases the country’s monthly fuel-import bill — already running at $198 million in July budgeting per CPC chairman D.J. Rajakaruna — and pushes back the breakeven case for any near-term pump price reduction.

Sources: Ada Derana — Global oil prices rise more than $2 on Israel strikes on Lebanon.