Oil at 2-month high

Oil traded near a two-month high amid rising tensions in the Middle East and concerns about a rapid start to hurricane season in the Atlantic region. Brent crude traded near $87 a barrel after rising on Monday, while U.S. crude traded above $83. The Israeli military said a Hezbollah drone strike wounded 18 soldiers, one seriously, threatening to escalate the conflict to full-scale war. Meanwhile, Cyclone Beryl made landfall on the Caribbean island of Carriacou as a Category 4 storm, raising concerns it could herald a severe hurricane season. Oil is consolidating gains from last month as OPEC+ powers keep a lid on supply and as summer travel picks up in the northern hemisphere and investors keep a close eye on gasoline demand ahead of the U.S. Independence Day holiday on July 4. Concerns about a difficult recovery in China, the largest importer of crude, are likely to cap price gains.