World

Oil Prices Surge By Over 4.5% Amid Israel-Hamas War

Early Asian trading on Monday saw an increase in oil prices of more than $4 a barrel as political unrest spread throughout the Middle East following dramatic military engagements between Israeli and Hamas forces over the weekend.

By 0120 GMT, Brent crude was up $4.18, or 4.94%, to $88.76 per barrel, while U.S. West Texas Intermediate crude was up $4.23, or 5.11%, to $87.02 per barrel.
The increase in oil prices reversed last week’s downward trend, which was the steepest weekly loss since March. Amid worries about the effects of high-interest rates on global demand, WTI and Brent both declined by more than 8% and over 11%, respectively. The deadliest military assault on Israel in decades was launched by the Palestinian Islamist group Hamas on Saturday, killing hundreds of Israelis and sparking a wave of Israeli air attacks on Gaza in retaliation that continued through Sunday.

Also read: Hamas Fighters Paraded Naked Body Of Female Israeli Soldier

Oil prices should be supported by rising geopolitical risk in the Middle East, according to ANZ Bank analysts, who also predicted greater volatility.

U.S. efforts to mediate a reconciliation between Saudi Arabia and Israel, in which the kingdom would normalise relations with Israel in exchange for a defense agreement between Washington and Riyadh, appear to be in jeopardy as violence has broken out.

Saudi officials allegedly informed the White House on Friday that they would be open to increasing output under the proposed Israel contract for the following year.
After Saudi Arabia and Russia, two important producers, curtailed their supplies for several months, a boost in Saudi output would have helped to ease the supply crunch.

Recent steps towards detente between Saudi Arabia and Iran would probably come to a halt if relations between Israel and Saudi Arabia were normalized.
Western countries condemned the strikes, but Iran and Hezbollah, Iran’s allies in Lebanon, openly hailed them.

Also read: Hamas Fighters Paraded Naked Body Of Female Israeli Soldier

The focus of the market has shifted to the assertion made by Israeli officials that Iran was involved in the assaults.
According to a letter by Vivek Dhar, an analyst at the Commonwealth Bank of Australia, “There must be a sustained reduction in oil supply or transport for this conflict to have a lasting and meaningful impact on oil markets.”

“If Western countries officially link Iranian intelligence to the Hamas attack, then Iran’s oil supply and exports face imminent downside risks,” Dhar stated.

Srushti Sharma

Recent Posts

Hina Khan Hails 11 Years Of PM Modi’s Leadership; Highlights National Progress

As the nation marks 11 years under PM Modi's leadership, actress Hina Khan shares her…

5 hours ago

Subhash Ghai Hails PM Modi’s Transformative Vision For India

Subhash Ghai has praised PM Narendra Modi’s leadership for catalysing India’s growth and changing the…

5 hours ago

India & Central Asia Boost Rare Earth Cooperation At Delhi Meet

India and five Central Asian nations have agreed to deepen cooperation on rare earths and…

6 hours ago

PM Modi’s Beej Se Bazaar Tak Vision Reshapes Indian Agriculture

Prime Minister Modi has redefined Indian agriculture with the ‘Beej Se Bazaar Tak’ vision, transforming…

6 hours ago

EV Sales Cross 4% Mark In May; Signalling Steady Shift To Green Mobility

EV sales topped 4% of passenger vehicle retail in May 2025, signalling growing demand for…

6 hours ago

Self-Reliant Defence Industry Marks India’s Strategic Security Ascent

One year into Modi 3.0, reforms have reduced poverty, strengthened defence, and accelerated the digital…

7 hours ago