U.S. oil prices rise on Israel-Hezbollah conflict concerns

• The price of oil in the United States has increased by approximately 1.8% during the week and 6.7% during the month of June.
• As indications emerge of a potential military clash between Israel and Hezbollah, there are growing concerns about a direct confrontation with OPEC member Iran, which is causing oil prices to increase.
• Defense officials informed NBC News that the Pentagon has relocated military assets near Lebanon in anticipation of evacuating American citizens.

The price of U.S. crude oil on Friday reached a two-month high and is currently experiencing a third consecutive weekly increase, as tensions escalate between Israel and the Hezbollah militia.

The highest level for the U.S. benchmark since April 30 was reached by West Texas Intermediate at $82.72 per barrel, while Brent hit $87.22 per barrel, the global benchmark's highest level in two months.

The price of oil in the United States has increased by approximately 1.8% during the week and 6.7% during the month of June.

Here are today's energy prices:

• The August contract price for oil is $82.10 per barrel, which represents a 36 cent increase, or 0.46%, while the year-to-date gain in U.S. oil is 14.6%.
• The global benchmark for August contract is up 32 cents, or 0.37%, to $86.71 per barrel. This represents a 12.5% increase year to date.
• The price of gasoline in July was $2.55 per gallon, which represents a 0.2% increase. To date in the year, gasoline prices have risen by 21.3%.
• The August contract price for gas is $2.73 per thousand cubic feet, representing a 1.82% increase. To date, gas has outperformed expectations by 8.6%.

According to RBC Capital Markets, oil prices are increasing due to indications of a potential military conflict between Israel and Hezbollah, which may lead to a direct confrontation with OPEC member Iran and disrupt crude supplies.

The Pentagon has relocated military resources near Lebanon in anticipation of evacuating American citizens as the conflict between Israel and Hezbollah intensifies, according to three U.S. defense officials. Meanwhile, the State Department advised U.S. citizens to reconsider traveling to Lebanon on Thursday.

If war breaks out, Hezbollah may target Israel's offshore gas operations while Israel could target Iranian oil facilities. Additionally, there is a possibility that Iran could attack tankers in the straight of Hormuz or abandon a détente with Saudi Arabia and attack the kingdom's oil facilities, according to RBC Capital Markets.

If the Iran-Saudi détente holds, there is still a possibility that the war could spread beyond the current borders and pose a risk to regional energy supplies and economic assets, according to Helima Croft, global head of commodity strategy at RBC, and her team of analysts in a Thursday note to clients.