International oil prices rose by around 4 percent on Monday as Israel intensified the massive bombardment of the Gaza Strip prompting fears that a wider conflict could affect the supply of oil from the Middle East.
By 1500 GMT, Brent crude was up $3.24, or 3.8 percent, to $87.85 a barrel while the US West Texas Intermediate crude was up $3.40 or about 4.1 percent at $86.19 a barrel.
The surge in prices reversed the largest weekly decline since March observed last week which saw Brent fall by around 11 percent and WTI going down by 8 percent over concerns about global demand.
Israeli bombardment of Gaza entered its third day today after Saturday’s surprise attack on Israel by Hamas. Israeli media reported that Israel has hit 1,000 targets in Gaza.
According to analysts, the conflict could potentially slow down Iran’s oil exports which have grown significantly this year.
The situation also threatens to derail efforts by the US to broker a deal between Saudi Arabia and Israel. According to reports, Saudi officials told the White House on Friday that they were willing to raise output in 2024 as part of the proposed Israel deal.
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