Oil prices surge 5% as Israel-Hamas conflict sparks fears of wider conflagration in the Middle East

On Saturday, Netanyahu’s comment “We’re at War” stunned the World. Reportedly, Hamas After Hamas launched a devastating surprise attack on Israel.

Due to the ongoing situation, A huge surge of 5% has been noticed in the Oil Prices (BQ Prime). It is now another concern that this situation can lead to some disruptions in the outputs from the Middle East.

The international standard for crude oil, Brent, increased by $2.25 a barrel to $86.83, while prices in the US also increased.

Although neither Israel nor the Palestinian territories are oil producers, the Middle East accounts for roughly one-third of the world's supply.

As per the reports by BBC, A palestine militant group told the News Channel that they had a direct backing for the move from Iran, a known world’s largest oil producer. 

However, This Sunday in a meeting in New York, Iran denied any involvement in the assault at the UN Security Council Meeting. Ebrahim Raisi, the president of Iran, has, nevertheless, stated that he supports the strike.

An Energy analyst Saul Kavonic stated that this rise in global oil prices could be  "due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia".

In India, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services has stated that nobody could say how this war will evolve. Looking from the market perspective it’s needed to know that death and destructions are tragic , but currently it’s unlikely to cause some major disruptions in the oil supplies therefore, impacting oil importers like India.

Also, Read, Who is Narges Mohammadi? Nobel Peace Prize 2023 Winner


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