Delhi/Hyderabad, Oct 9 (Hydnow) Oil prices jumped by 4 percent on Monday on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.
The West Texas Intermediate (WTI), the benchmark for US oil, rose to more than $86 a barrel, while the price of Brent crude also surged in early Asian trading, the media reported.
The Israel and Palestinian territories are not oil producers, but the Middle Eastern region accounts for almost a third of the global supply. A wave of attacks launched by the Hamas militant group in October was the biggest escalation between the two sides for a decade.
Advertisements
Western nations condemned the attacks but a spokesperson for Hamas told the media that the group had direct backing for the attack from Iran.
Iran denied involvement in the attack at a UN Security Council meeting in New York on Sunday, but Iranian President Ebrahim Raisi has expressed support for the attack.
“The risk premium on oil is rising due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia, energy analyst Saul Kavonic told the media.
Advertisements
“If the conflict envelops Iran, which has been accused of supporting the Hamas attacks, up to 3 percent of global oil supply is at risk, he added.
Around a fifth of global supply would be “held hostage”, Kavonic said, if passage through the Strait of Hormuz, a vital oil trading route is disrupted.
The Strait of Hormuz is crucial for the main oil exporters in the Gulf region, whose economies are built around oil and gas production, the media reported.
Advertisements
Uncertainty over how events could develop in the coming days may also drive investments into US Treasury bonds and the dollar – which investors traditionally bought at times of crisis, said James Cheo from HSBC bank. (Hydnow)
Next Story:
-
Asaduddin Owaisi Urges People To Participate In Caste Census
AIMIM President Asaduddin Owaisi urged the people to participate in the ongoing ‘caste census’ being taken up in the State.
-
Heavy Rains In Telangana For Next Three Days
The people of Telangana have been alerted because of moderate to heavy rains in the state for the next three days, according to the Indian Meteorological Department (IMD).
-
Abdul Hafeez From Telangana Elected As SIO India National President
Abdul Hafeez from Telangana was elected as the National President of the Students Islamic Organisation (SIO) of India.
-
Banks To Remain Closed On These Dates In December 2024
Banks will not function on 17 days in December on account of festivals, as well as on second and fourth Saturdays and all Sundays.
-
Youth Kills His Girlfriend With Knife In Madhya Pradesh
A youth stabbed his girlfriend seven times with a knife in broad daylight after accusing her of cheating in Madhya Pradesh on Wednesday afternoon. After seriously injuring the woman, the accused fled the scene.
Now you can get the latest stories from Hydnow every day. Click the link to subscribe. Click to follow Hydnow’s Facebook page and Twitter and Instagram