Oil prices have soared due to escalating tensions in the Middle East.
The price of the global crude oil benchmark Brent rose by 3.0% to reach over USD 81 per barrel, AFP reports.
Equity markets were mixed, breathing a sigh of relief after rallying on August 23 when US Federal Reserve head Jerome Powell signaled that an interest rate cut was imminent.
In a further sign of the Fed's thinking, on August 26 another policymaker came out in favor of a rate cut.
San Francisco Fed President Mary Daley said it was "hard to imagine" interest rates not being cut in September, adding, "The direction of change is down and the time to adjust is now."
Following Sunday's exchange of fire between Lebanon's Hezbollah and Israel, tensions were still high in the Middle East.
Hezbollah announced it had launched a major drone and missile attack on Israel. Israel said it had carried out air strikes on Lebanon in which "thousands" of rocket launchers were destroyed and a major attack was foiled.
The oil market also reacted to the eastern Libya-based administration's announcement that it was closing oil fields under its control and "suspending all production and exports until further notice."
The move by the Benghazi administration, which controls most of the country's oil fields, comes amid rising tensions after the UN-recognized Tripoli-based government replaced the central bank governor. | BGNES
