Oil Rally Extends on Fears of Significant Escalation in Israel-Lebanon Conflict

Brent crude overtook $86 on Thursday as fears of an all-out war between Israel and Lebanon took center stage, with Iraq’s Iran-backed militias vowing to strike U.S. interests in the Middle East if Israel launches a large-scale campaign against Hezbollah in southern Lebanon.  Overnight, an Israeli strike on southern Lebanon injured more than 20 people after hitting a residential building in the city center of Nabatieh, with Lebanese news agencies saying there were no casualties and injuries were not critical.  German Foreign Minister…