Oil Prices Ease as Israel-Hamas Conflict Raises Concerns
Oil prices decline amid uncertainty over Israel-Hamas war
In early Asia trade on Monday, oil prices experienced a slight decrease, reversing the rally seen on Friday. Investors are cautiously monitoring the Israel-Hamas conflict, as the involvement of other countries could potentially drive up prices and negatively impact the global economy.
Global oil prices experience a slight dip
Both Brent crude and U.S. West Texas Intermediate (WTI) crude dropped by 0.4% in early trading. Brent fell 36 cents to $90.53 per barrel, while WTI declined by 37 cents to $87.32 a barrel by 2215 GMT on Sunday.
Last week’s gains give way to uncertainty
After last Friday’s surge, with both benchmarks rising nearly 6%, oil prices posted their highest daily percentage gains since April. This increase was driven by the anticipation of a potential wider conflict in the Middle East. Brent also recorded its biggest weekly gain since February, rising by 7.5%, while WTI climbed 5.9% for the week.
Assessing the impact on global oil supplies
Despite Israel not being a major oil producer, market observers and investors are closely analyzing the conflict’s potential escalation and its implications for nearby oil-producing countries. The Middle East region plays a significant role in global oil production, making it crucial to gauge the conflict’s impact on supplies.
Israel’s vow to “demolish Hamas”
Israel’s Prime Minister, Benjamin Netanyahu, has vowed to “demolish Hamas” as Israeli troops prepare to enter the Gaza Strip in pursuit of Hamas militants. This pursuit follows a deadly rampage that shocked the world, with the Israeli border towns being targeted.
Deteriorating conditions in Gaza
Inside the narrow and crowded streets of Gaza, the situation continues to deteriorate as the death toll from Israeli air strikes rises. Due to the risk involved in moving bodies to hospitals and with cemeteries at full capacity, bodies are being stored in ice cream freezer trucks.
Efforts to prevent escalation and secure hostages
With concerns of the conflict spreading further, U.S. Secretary of State Antony Blinken is currently on a tour of Middle East states. His objective is to prevent further escalation and secure the release of the 155 hostages Israel claims were taken by Hamas back into Gaza.
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