Oil prices rose over 2% in early trading on Monday after Israel ordered troops to move further into Lebanon, despite a ceasefire announced more than six weeks ago.
U.S. crude futures gained $2.17 to $89.53 a barrel, while Brent crude rose $1.93 to $93.05 a barrel.
The escalation dims hopes for a U.S.-Iran ceasefire extension. Concerns over supply via the Strait of Hormuz also supported prices.
Weak economic data from China over the weekend failed to offset supply worries.
