Oil prices ease after Iran says military operations against Israel are over

Oil prices pulled back from session highs Monday as the dust settled after Iran and Israel traded a barrage of military strikes.

Brent crude futures, the international benchmark, rose 1.41% to $94.40 per barrel by 1:03 p.m. ET. U.S. West Texas Intermediate futures added 0.81% to $91.27.

Iran's Foreign Ministry told CNBC that Tehran had ceased strikes against Israel, but warned it would resume hostilities if Jerusalem continues attacks on Lebanon. Prime Minister Benjamin Netanyahu said in a brief video statement that Israel's fight against Iran and Hezbollah are not over.

Oil prices spike more than 5% earlier after Iran launched missiles at Israel in retaliation for its military campaign in Lebanon. It was the first such attack since the April ceasefire agreement. Israel responded by hitting military targets in western and central Iran, Israel Defense Forces said in post on X.

President Donald Trump tried to keep the violence from escalating. Trump said earlier on social media that Iran and Israel were looking to agree to a ceasefire. He said U.S. negotiations with Iran on a final deal were proceeding.

An Iranian official involved in peace talks with the U.S. told MS NOW earlier that "a deal with President Trump is no longer feasible at this stage."

Iran's parliamentary speaker MB Ghalibaf said the U.S. naval blockade and Israeli strikes in Lebanon are violations of the April ceasefire. U.S. and Israel assets in the region are now "legitimate targets," he said.

Meanwhile, OPEC+ agreed to increase targets by 188,000 bpd from July, according to an OPEC statement, making this the fourth oil output quota hike approval since the closure of the Strait of Hormuz.

This increase is on par with June's, which was lowered from monthly increases of 206,000 bpd in May and April due to the exit of the UAE from the organization.

—CNBC's Garrett Downs contributed to the report.