Israeli forces captured the medieval Beaufort Castle in southern Lebanon and crossed the Litani River, expanding a ground offensive that threatens to unravel a U.S.-brokered ceasefire and push crude oil prices higher on geopolitical risk.
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Oil jumps 2% as Israel expands Lebanon offensive beyond ceasefire line
Crude oil climbed more than 2% Monday as Israeli forces captured a Crusader-era castle and crossed the Litani River in southern Lebanon, expanding a ground offensive that threatens to unravel a U.S.-brokered ceasefire declared in April.
"The capture of Beaufort is a dramatic stage and a dramatic shift in the policy we are leading," Israeli Prime Minister Benjamin Netanyahu said Sunday, after troops raised the Israeli flag over the 900-year-old fortress about nine miles from the border. "We have broken the barrier of fear."
WTI crude rose toward $78 a barrel while Brent advanced above $82, extending gains as traders priced in a widening conflict that risks disrupting supply routes across the broader Middle East. The move marks the largest single-day advance since late April, when the temporary ceasefire between the U.S. and Iran first took effect.
The escalation threatens to complicate already-fraught U.S.-Iran negotiations, where President Donald Trump has sent back a "tougher" peace proposal to Tehran, according to reports from the New York Times and Axios. Iran's chief negotiator Mohammad Bagher Ghalibaf said Sunday that Tehran would not approve any agreement "until we are certain that the rights of the Iranian people have been upheld," while insisting that Lebanon be included in any final deal.
Beaufort and the Litani Push
Israeli Defense Minister Israel Katz confirmed Sunday that troops had raised the flag over Beaufort Castle — a strategic hilltop position Israel previously held during an 18-year occupation that ended in 2000. "Our brave soldiers have captured the Beaufort once again — and they will remain there as part of the security zone in Lebanon," Katz said.
Netanyahu said Israeli forces had crossed the Litani River, placing them roughly 20 miles inside Lebanese territory. The Israeli military issued sweeping evacuation orders for areas south of the Zahrani River, about 25 miles from the border, warning it was targeting Hezbollah positions. One Israeli soldier was killed Sunday in a Hezbollah drone strike, the military said.
The offensive has displaced more than 1.2 million people in Lebanon, according to local authorities. The Lebanese health ministry reports more than 3,300 people killed, about 20% of them women, children and first responders. Israel reports two civilians and 23 soldiers plus a military contractor killed in Hezbollah attacks.
United Nations figures show Israel launched more than 3,300 projectiles and airstrikes from May 24 through May 30, compared with 187 projectiles fired by Hezbollah and its allies over the same period.
Iran Talks and the Strait of Hormuz
The Lebanon escalation comes as U.S. and Iranian negotiators remain deadlocked over a permanent agreement to end the broader Middle East war. Trump has demanded guarantees against any Iranian nuclear weapons development and the reopening of the Strait of Hormuz, where competing blockades have strangled a vital route for global oil supplies.
Iran has demanded the release of $12 billion in frozen assets before engaging in substantive nuclear talks, while insisting that any deal must also address the conflict in Lebanon. Tehran has dismissed earlier Trump comments about destroying its enriched uranium stockpile as "baseless," according to Iranian media.
The April ceasefire between the U.S. and Iran halted daily strikes across Iran and the Gulf, but sporadic fighting has continued. U.S. forces struck the Iranian port of Bandar Abbas earlier this week, prompting retaliatory fire from Iran, while Iran's Revolutionary Guards said they shot down a U.S. military drone approaching Iranian territorial waters.
Lebanese Prime Minister Nawaf Salam accused Israel of pursuing a "scorched-earth policy and collective punishment" and called for "a swift and real ceasefire." Hezbollah has made clear it will not disarm while Lebanon remains under attack.
The last time Israel held Beaufort Castle during its two-decade occupation of southern Lebanon, the position served as a symbol of Israeli military dominance over the region. Its recapture now signals that Israel is preparing for an extended presence beyond the ceasefire line, raising the risk of a prolonged conflict that keeps oil markets on edge.
This article is for informational purposes only and does not constitute investment advice.
