BEIJING, June 1 (Reuters) - Oil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.

U.S. crude futures rose $2.37 or 2.71% to $89.73 a barrel as of 1017 GMT. Brent futures rose $2.07 or 2.27% to $93.19 a barrel.

Brent and WTI had fallen 1.8% and 1.7%, respectively, on Friday on expectations that the U.S. and Iran had reached a ceasefire agreement.