Oil Prices Increase By Over $4 As The Israel-Hamas Conflict Worsens


 During early Asian trade on Monday, oil prices increased by more than $4 per barrel as a result of intensifying military clashes between Israeli and Hamas forces. This increased political unpredictability in the Middle East.

U.S. West Texas Intermediate crude jumped by 5.11 percent to $87.02 per barrel, while Brent crude increased by 4.94 percent to $88.76 per barrel.

Concerns about how rising global interest rates could affect demand led to a recent downward trend in prices, which abruptly reversed with this price surge.

The worst military attack by the Palestinian Islamist group Hamas against Israel in decades occurred over the weekend, resulting in hundreds of casualties and a string of Israeli airstrikes on Gaza in retaliation.

Oil supplies may be at jeopardy if the ongoing conflict prevents the United States from mediating a Saudi-Israeli reconciliation.

As part of a possible agreement with Israel, Saudi officials are apparently willing to raise oil production in 2019. This information was previously published by Reuters.

A rise in production could ease the tight supply conditions brought on by Saudi Arabia and Russia's months-long production restrictions.

The latest efforts at détente between Saudi Arabia and Iran may be impacted by the normalisation of relations between Saudi Arabia and Israel.

The potential of Iranian involvement in the strikes has now captured the market's attention, further complicating the situation.