After Israel attacked Lebanon, Iran protested and halted the exchange of messages with the United States aimed at a cease-fire agreement. In the aftermath, international oil prices are surging.
On the 1st (local time) at the ICE Futures Exchange, as of 11:19 a.m. Eastern time, Brent crude futures for August delivery were transacted at $97.19 per barrel, up 6.7% from the previous session.
At the New York Mercantile Exchange at the same time, West Texas Intermediate (WTI) crude futures for July delivery were transacted at $94.01 per barrel, soaring 7.6% from the previous session.
According to Iranian reports that day, Iran's cease-fire negotiating team decided to halt dialogue and document exchange with the U.S. The main condition for a truce was peace between Israel and Lebanon, but the condition was broken when Israel attacked Lebanon, they said.
Instead, Iranian media reported that Iran decided to completely blockade the Strait of Hormuz and activate new fronts, including the Bab el-Mandeb Strait at the entrance to the Red Sea.
The Israel Defense Forces have resumed attacks on Lebanon beyond the so-called "yellow line," the existing line of control, in accordance with Prime Minister Benjamin Netanyahu's directive on the 25th of last month to intensify the offensive against Hezbollah.