- Oil prices climbed as Israel expanded its military push in Lebanon.
- The development comes despite a ceasefire that was declared in April.
- Goldman saw risks from both supply disruptions and softer demand.
Oil prices rose Monday after Israel ordered troops to push deeper into Lebanon, renewing concerns that clashes with the Iran-backed Hezbollah group could threaten a fragile ceasefire between Washington and Tehran.
The escalation in hostilities, which followed the U.S.-brokered Israeli-Lebanon talks in Washington on Friday, dimmed hopes that Washington and Tehran were nearing an extension of their ceasefire arrangement.
Goldman Sachs said risks to its fourth-quarter 2026 Brent and WTI forecasts of $90 and $83 per barrel remain "two-sided," with the bank warning that while persistent Middle East supply disruptions could push prices higher, weakening demand could create meaningful downside risks.
Goldman estimated that weak April oil retail sales data from China and Western Europe together implied around 2 million barrels per day of downside risk to its already subdued demand forecasts.<small>Source: CNBC</small>
Business
Oil jumps 2% as Israel expands Lebanon offensive, rattling ceasefire hopes
CNBC
June 01, 2026
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