Oil rises on supply concerns following clashes between Israel and Hamas | spcilvly

As tensions rose in the Middle East following Hamas’ surprise attack on Israel over the weekend, crude oil prices rose on concerns of a broader conflict.

Investors in global markets have started avoiding riskier assets like stocks and have started investing in gold, bonds and US dollars.

Oil prices soared as much as 5% as fears of tight supply pushed Brent crude futures to $89 a barrel and US crude futures to $87 a barrel.

Natural gas prices in Europe also rose after Israel ordered the closure of the Chevron Corp.-run Tamar gas field in the eastern Mediterranean.

The latest conflict in the Middle East has erupted at a time of ongoing geopolitical concerns and worries about global economic growth.

Global investors have become risk-averse as clashes between Israel and the Palestinian Islamist group Hamas deepened political uncertainty across the region and raised concerns about oil supplies.

The Israeli military said Monday it attacked hundreds of Hamas and Islamic Jihad targets in the Gaza Strip overnight in retaliation for one of the bloodiest attacks in its history, when Hamas militants killed hundreds of Israelis and kidnapped dozens more.

Israel also said its troops had killed armed infiltrators entering the country from Lebanon, raising fears that the fighting could spread to a second front.

On Wall Street, US stock indices fell on Monday.

As of 11:33 a.m. ET, the Dow Jones Industrial Average was down 13.18 points, or 0.04%, at 33,394.40. The S&P 500 fell 6.67 points, or 0.15%, to 4,301.83. The Nasdaq Composite fell 75.77 points, or 0.56%, to 13,355.57.

The energy sector gained the most in the S&P 500, with a jump of 3.6%.

European stocks fell on Monday due to military clashes in the Middle East.

The pan-European STOXX 600 index fell 0.3%, led by retail and travel and leisure stocks.

The energy index in Europe jumped 2.9% due to rising oil prices.

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Updated: October 10, 2023, 12:32 am IST

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