Oil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon ​in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more ‌than six weeks ago.

US crude futures rose $2.37 or 2.71% to $89.73 a barrel.

Brent futures rose $2.16 or 2.37% to $93.28 a barrel.

The stepped-up fighting, coming just after the US hosted Israeli-Lebanon peace talks in Washington on Friday, ​dimmed expectations that the US and Iran could soon announce an extension to their ceasefire agreement, ​which had driven Brent and WTI to settle down 1.8% and 1.7%, respectively, on ⁠Friday.

The Israel-Lebanon conflict has been the broadest spillover of the Iran war. It started on March 2 ​when Hezbollah began firing rockets and drones across the border into Israel to back its ally Iran.

​The two sides reached a ceasefire in mid-April but have continued to trade fire.

US President Donald Trump said on Friday that he would soon decide on a proposed deal to extend a ceasefire with Iran announced in early April, giving ​negotiators more time to seek a permanent end to the conflict and find a solution to ​the underlying dispute over Iran’s nuclear program.

Israel would be key to any such deal, and Iran has also said ‌repeatedly ⁠that Hezbollah must be included.

Meanwhile, concerns are rising about mines in the key oil and gas shipping lane, the Strait of Hormuz, IG analyst Tony Sycamore said in a note.

That could slow the process of reopening the strait and mean relief for the oil market comes more slowly, even after it is reopened.

“Even if ​an agreement is reached, ⁠it won’t deliver a flood of supply,” Sycamore said.

An Axios reporter said on X on Friday that Iran had dropped more mines in the strait earlier ​in the week, shortly after US Defence Secretary Pete Hegseth said that attempts ​to lay ⁠more mines would be a violation of the ceasefire.

Hormuz is a conduit for about a fifth of global oil and gas flows, and Iran has effectively closed it since the conflict began with US and ⁠Israeli strikes ​in February.

Concerns over supply outweighed lacklustre economic data from ​China over the weekend, which showed stalling factory activity.

This added to concerns that the world’s second-largest economy is losing momentum, weighed down ​by a contraction in exports and cost pressures.