Oil Prices Rise Amid Palestine-Israel Conflict

Oil prices on the global market have risen by 4% amid the Palestine-Israel conflict. On Sunday evening, oil prices increased while U.S. stock futures fell, marking the first response to the war with Hamas, according to CNN.

Despite Israel not being a major oil producer, the escalating tensions in the oil-rich Middle East have alarmed investors, who had already sold off oil in recent weeks. On Sunday evening in the U.S., oil prices rose by 4%, reaching $86 per barrel. Brent crude also saw an increase of about 4%, selling for approximately $88 per barrel.

Stephen Innes, managing partner at SPI Asset Management, stated that the rise is likely due to traders responding to geopolitical escalation in the Middle East with the principle of “buy first, ask questions later.” “Historical analysis shows that oil prices have consistently risen after crises in the Middle East,” he wrote.

Global investors are concerned that prolonged tensions in the Middle East could hinder the fragile recovery of the global economy.