Oil falls $1 on report Israel may end Lebanon assault

LONDON (Reuters) – Oil fell a dollar on Monday in volatile trading after a report, quickly denied, that
Israel could end its offensive against Lebanese Hizbollah guerrillas within days.

Oil tumbled after Israel’s Channel 10 television carried the report, citing a senior military officer.

An Israeli government spokeswoman quickly responded, saying Israel had no plan to halt the offensive as of yet.

Concern that the conflict could escalate and spread to Middle East oil producers had earlier sent London Brent crude to a record high.

Reuters