Oil futures rallied on Monday by more than 4%, propelling U.S. prices to their highest finish in nearly a week. The recent attack by Palestinian militant group Hamas on Israel has raised concerns about potential disruptions to oil supplies in the Middle East region. Experts predict that this violence will continue to exert upward pressure on oil prices, at least in the short term.
One speculation that has emerged is the possible involvement of Iran in aiding Hamas with planning the attack. Should Israel retaliate by attacking Iran, experts believe that oil prices could surge even further, potentially surpassing the $100 mark.
At present, the focus remains on whether Saudi Arabia will release its oil reserves to help stabilize the markets or advocate for the view that the fundamental factors driving the market remain unchanged by the conflict.
In response to these events, the November West Texas Intermediate crude (CLX23) experienced a significant increase of $3.59, representing a 4.3% rise, concluding at $86.38 per barrel on the New York Mercantile Exchange.