2023-10-09 02:19:20
Oil prices soared by more than 4% on Monday after the surprise offensive this weekend by the Palestinian Islamist movement Hamas against Israel which raised concerns about its consequences in terms of supplies from the region rich in black gold.
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Brent jumped 4.7% to $86.65 and West Texas Intermediate was up 4.5% to $88.39 in early trading on Asian markets.
Israel’s surprise attack and declaration of war on Sunday against the Palestinian Islamist movement has already left more than 1,100 dead and a new rise in tensions is feared in the Middle East.
“What is decisive for markets is whether the conflict remains contained or spreads to other regions, particularly Saudi Arabia,” said Brian Martin and Daniel Hynes analysts at ANZ.
“At least initially, markets appear to believe that the situation will remain limited in scope, duration and impact on oil prices. But we can expect greater volatility.”
This crisis comes as oil prices are already high due to concerns over production cuts by Russia and Saudi Arabia, raising risks of global inflation.
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