Oil climbs on supply concerns after Israel-Hamas clashes
As the tensions escalated in the Middle East after Hamas’ surprise attack on Israel over the weekend, crude oil prices climbed on worries of a broader conflict.
Investors across the global markets have started shunning riskier assets like stocks and started investing into gold, bonds and the US dollar.
Oil prices soared by as much as 5% as fears of tightening supply drove Brent crude futures as high as $89 per barrel and US crude futures topping $87 a barrel.
Natural gas prices in Europe also rose after Israel ordered the shutdown of Tamar gas field run by Chevron Corp. in the eastern Mediterranean.
The latest Middle East conflict has erupted at a time of ongoing geopolitical concerns and worries about global economic growth.
Global investors have turned risk averse as clashes between Israel and the Palestinian Islamist group Hamas deepened political uncertainty across the region and raised oil supply concerns.
The Israeli military on Monday said that it struck 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 abducted dozens more.
Israel also said that its troops had killed armed infiltrators entering the country from Lebanon, raising fears the fighting could spread to a second front.
On Wall Street, the US stock indices fell on Monday.
At 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 was down 6.67 points, or 0.15%, at 4,301.83. The Nasdaq Composite was down 75.77 points, or 0.56%, at 13,355.57.
Energy sector was the top gainer on the S&P 500, jumping 3.6%.
European stocks fell on Monday on Mideast military clashes.
The pan-European STOXX 600 index edged 0.3% lower, led by retailer and travel & leisure stocks.
The energy index in Europe jumped 2.9% on rising oil prices.
“Exciting news! Mint is now on WhatsApp Channels ???? Subscribe today by clicking the link and stay updated with the latest financial insights!” Click here!
Download The Mint News App to get Daily Market Updates.
Updated: 10 Oct 2023, 12:32 AM IST
