July 20 (Bloomberg) -- Crude oil rose for the first time in four days in New York as Israeli forces stepped up attacks on Hezbollah, increasing the risk of the conflict disrupting supplies from the Middle East.

Israeli air force jets dropped about 23 metric tons of explosives on the Iranian-backed militia's headquarters in south Beirut late yesterday. Two Israeli soldiers and a Hezbollah militant were killed in a clash in southern Lebanon.

``The issue is what kind of risk is there to supply stability in the Middle East as the conflict continues,'' said Dariusz Kowalczyk, chief investment strategist at CFC Seymour Ltd. in Hong Kong. ``A lot depends on how long the Israeli operations last.''

Oil for August delivery rose as much as 49 cents, or 0.7 percent, to $73.15 a barrel in electronic on the New York Mercantile Exchange. The contract traded at $73.05 at 11:06 a.m. Singapore time and will expire today. Futures have risen 20 percent this year.

The more actively traded September contract gained 38 cents, or 0.5 percent, to $75.15 a barrel at 11:05 a.m. Singapore time.

In London, Brent crude oil rose 43 cents, or 0.6 percent, to $74.33 a barrel on London's ICE Futures Exchange.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.

Last Updated: July 19, 2006 23:18 EDT