Brent holds near $89 as Middle East tensions persist

Brent crude traded near $89 per barrel on Monday, holding onto last week’s gains as tensions in the Middle East remain elevated, keeping markets wary of further supply disruptions.

Over the weekend, Israel launched fresh strikes on Lebanon that killed 11 people, including a senior Hezbollah commander.

President Donald Trump is also preparing new economic sanctions aimed at forcing Iran to surrender, as pressure mounts on his administration to bring the military campaign to an end.

The interim ceasefire agreement between the US and Iran is set to formally expire later today, while negotiations to end the conflict and reopen the Strait of Hormuz remain deadlocked.

Meanwhile, Middle Eastern producers are covertly moving millions of barrels of crude through the waterway, helping to limit further price gains.