Oil prices surged over 2% on Monday due to military clashes between Israel and the Palestinian group Hamas, sparking fears of a broader conflict in the Middle East.
Brent crude rose by $2.28 (2.7%) to $86.86 a barrel, and U.S. West Texas Intermediate crude reached $85.23 a barrel, up by $2.44 (nearly 3%).
This increase followed last week’s significant decline, the largest since March, driven by concerns about global demand amidst a darkening economic outlook.
The violence in the region threatens U.S. efforts to broker a peace deal between Saudi Arabia and Israel, potentially impacting oil supply dynamics. Analysts are uncertain about the duration of this oil price rally, particularly if the conflict expands to involve Iran, potentially jeopardizing a significant portion of global oil supply.
