Oil prices rose by approx. 4% following a surprise attack by Palestinian militant group Hamas on Israel, CNBC reports.
Global benchmark Brent traded at $87.85 a barrel, a 3.9% increase, while US West Texas Intermediate futures rose by 4.1% to reach $86.19 per barrel.
The conflict itself does not directly threaten any major source of oil supplies, as neither Israel nor the Palestinian territories are significant oil producers.
However, the situation raises concerns about potential regional escalation, especially involving Iran, which could impact oil markets.
