Oil edges higher as Brent rises 0.5% on Middle East tensions

Brent crude rose 0.5% in early Asian trading as renewed fighting between Israel and Hezbollah and the prospect of additional U.S. pressure on Iran revived supply concerns in the oil market. Israel said an Aug. 15 airstrike in southern Lebanon killed 11 people, including a senior Hezbollah commander, in the deadliest strike since the sides agreed to a ceasefire in early June. The violence came as talks involving the U.S. and Iran remained stalled ahead of a ceasefire deadline later on Aug. 16, while Washington was said to be preparing an "economic isolation" plan for Tehran. Broader market sentiment was mixed: the S&P 500 fell 0.2% after weaker U.S. consumer sentiment and retail sales data, S&P 500 futures were little changed in Asia, and the dollar hovered near its lowest level since May as expectations for a September Federal Reserve rate increase eased.

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