Oil prices jumped on Monday amid an attack by the radical Palestinian group Hamas on Israel.
The escalating situation in the Middle East poses a risk of a reduction in oil supplies from the region, Market Watch notes.
“Historical analysis shows that oil prices tend to rise steadily in the wake of crises in the Middle East,” said Stephen Innes, managing director of SPI Asset Management.
The cost of December futures for Brent crude oil on the London ICE Futures exchange at 8:15 a.m. on Monday is $87.24 per barrel, which is $2.66 (3.14%) higher than at the close of the previous session. On Friday, the price of these contracts increased by $0.51 (0.6%) to $84.58 per barrel.
Futures for WTI for November in electronic trading on the New York Mercantile Exchange (NYMEX) have risen by $2.84 (3.43%) to $85.63 per barrel by this time. As a result of the previous trading, the value of these contracts increased by $0.48 (0.6%) to $82.79 per barrel.
On Saturday, rocket attacks were launched from the Gaza Strip on the southern and central regions of Israel. Dozens of Palestinian militants on trucks and paragliders infiltrated Israel from the Gaza Strip.
According to recent reports, the number of people killed in Israel from attacks by fighters of the radical Palestinian group Hamas has exceeded 600, The Times of Israel reported on Sunday. Among the dead are civilians and dozens of police and military personnel. In addition, 2048 people were injured. Israeli authorities believe that Palestinian militants have taken at least a hundred hostages on Israeli territory and taken them to Gaza.
The Israeli Defense Forces announced the launch of Operation Iron Swords in response to large-scale Hamas attacks. The Israeli authorities officially put the country in a state of war.
The Wall Street Journal reported, citing informed sources, that Hamas’s current actions against Israel were planned in advance with the assistance of Iran.
If Iran’s involvement is confirmed, the United States may tighten control over compliance with sanctions on oil exports from the country, Market Watch notes.
Last week, Brent fell by 8.3% and WTI by 8.8%.
