Oil prices surged after a shock attack on Israel by Hamas brought renewed instability to the Middle East.
More than 1,100 people have died since the fighting between Israel and militant group Hamas broke out over the weekend, in a conflict that has potential repercussions across the wider region. US crude futures surged as much as 5.4% in New York, at one point topping $87 a barrel.
While Israel’s role in global oil supply is negligible, the bloody outbreak threatens to embroil both the US and Iran. The latter has become a major source of extra crude this year, alleviating otherwise tightening markets. Increased application of American sanctions on Tehran could constrain those shipments.
Any retaliation against Tehran — amid reports that it helped to plan the attacks — could endanger the passage of vessels through the Strait of Hormuz, a vital conduit that transports much of the world’s crude and which the Iranian government previously has threatened to close. Iran denied on Monday that it was involved in the assault.
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