By Colleen Howe

BEIJING, June 8 (Reuters) – Oil prices were up more than $2 a barrel on Monday after Israel on Sunday launched renewed strikes on Lebanon despite ‌a truce between the two countries, eroding hopes for an end to the ‌wider war and a restart to crude flows through the Strait of Hormuz.

U.S. crude futures were up $2.10, or ​2.32%, at $92.64 per barrel as of 0013 GMT, while Brent crude futures rose $2.33, or 2.5%, to $95.42 a barrel.

That erased most of the losses from Friday, when prices had fallen on mounting hopes of a deescalation in the U.S.-Iran conflict, which started with U.S. and Israel strikes on Iran ‌in February.

The latest strikes appeared ⁠to present yet another barrier to a U.S.-Iran peace deal and the reopening of the Strait of Hormuz, a key conduit for global oil ⁠and gas flows. Iran has made a ceasefire with Lebanon a condition for a peace deal with Washington.

Iran retaliated for the Beirut strikes on its ally Hezbollah by launching missiles at Israel. ​U.S. President ​Donald Trump said he would tell Israeli Prime ​Minister Benjamin Netanyahu not to retaliate ‌at Iran.

Israel had invaded Lebanon in March after Iran-backed Hezbollah fired rockets and drones across the border. Lebanon and Israel said on June 3 that they had agreed to a ceasefire following negotiations in Washington.

The two countries had previously agreed to a cessation of hostilities in April but violence continued.

The wider war has been on pause since the U.S. and Israel ‌halted their attacks on Iran in early April, but ​with Tehran continuing to block most shipping through the ​Strait of Hormuz.

Amid the resulting supply ​crisis, OPEC+ on Sunday agreed its fourth increase in oil output in ‌four months. But analysts said the decision ​would have little impact ​since most OPEC+ members could not meet their output targets because of the Hormuz closure or, in the case of Russia, infrastructure attacks that have eroded its production ​capacity.

“In the current market, the ‌physical impact of such a decision would be close to zero,” Rystad Energy ​head of geopolitical analysis Jorge Leon said in a note.

(Reporting by Colleen ​Howe; Editing by Edmund Klamann and Christopher Cushing)