KUALA LUMPUR- Oil prices rose on Tuesday on concerns the intensifying conflict between Israel and Hezbollah may impact supply in the key Middle East producing region and a tropical storm may impact output in the US the world’s biggest crude producer, later this week.

Brent crude futures for November were up 21 cents, or 0.3 percent , at $74.11 a barrel. US crude futures for November were up 24 cents, or 0.3 percent , at $70.61.

Both contracts closed lower on Monday as demand worries took precedence in investors’ minds after disappointing euro zone business activity and on lingering concerns about Chinese fuel consumption.

Israel’s military said it launched airstrikes against Hezbollah sites in Lebanon on Monday, which Lebanese authorities said had killed 492 people and sent tens of thousands fleeing for safety in the country’s deadliest day in decades.

Israel and Hezbollah, an Iranian-backed group based in Lebanon, exchanged fire after thousands of pagers and walkie-talkies used by Hezbollah members exploded last week. The attack was widely blamed on Israel.

Hezbollah has been trading fire with Israeli forces across the frontier since its Palestinian ally Hamas in Gaza and Israel went to war on Oct. 7.

“The oil market has been concerned that rising tensions in the region were dragging the OPEC oil producer closer to engagement,” said ANZ bank said in a note, referring to Iran.