• Oil pops above $75.00 with Israel and Hezbollah entering into tit-for-tat attacks. 
• The recent uprising in tensions and violence might put negotiations for a ceasefire deal in Gaza on loose screws. 
• The US Dollar Index trades back to 101.00 after its steep decline last week. 

Oil prices are pumping higher on Monday after violence picked up in the Gaza region and Israel and Hezbollah exchanged heavy fire, with several bombings and drone attacks from both sides during the weekend. The major escalation in the region could not come at a worse time as a ceasefire deal for Gaza is still being negotiated. This violence could put any potential accord on loose screws and might even expand the conflict to other countries in the region.

The US Dollar Index (DXY) is licking its wounds after posting one of its worst weekly performances in over a year. US Federal Reserve Chairman Jerome Powell confirmed on Friday that an interest-rate cut is coming in September, but markets seem to be heading too far ahead of themselves by pricing in big rate cuts before the year ends. If the Fed wants to obtain a soft landing, it needs to cut gradually and slowly, not by big heaps as markets are expecting. 

At the time of writing, Crude Oil (WTI) trades at $75.60 and Brent Crude at $79.21.