Oil Prices Jump More Than 4% In The Wake Of Hamas Attack On Israel

• Oil prices surged by over 4% due to the Israel-Hamas conflict entering its third day after a surprise attack by Hamas on Israel. Global benchmark Brent rose by 4.2% to $88.15 a barrel, and U.S. West Texas Intermediate increased by 4.3% to $86.38 per barrel, marking the largest one-day gain since April 3.
• Hamas initiated a multi-pronged infiltration into Israel using various means, following numerous rockets fired from Gaza into Israel. At the time, at least 700 Israelis and 313 Palestinians have reportedly died in the conflict.
• Analysts view the surge in crude prices as a likely temporary and knee-jerk reaction. The conflict doesn't directly threaten major oil supplies, as neither Israel nor Palestine are significant oil producers. However, the conflict is near a key oil-producing and exporting region, raising concerns about potential impacts on global oil markets.
• Iran's oil supply is a major concern, especially if linked to the conflict, potentially affecting oil exports and prices. Ongoing geopolitical tensions pose a risk of spillover and escalation in the region, potentially affecting oil supply and prices.
• The Strait of Hormuz, a crucial oil transit chokepoint, could be impacted if the conflict involves Iran, potentially leading to a significant increase in oil prices.

(Source: CNBC)