An uneasy calm is hanging over markets early Monday as Israel makes preparations for a ground invasion of Gaza in response to a recent attack by Hamas.
Crude Prices Remain Steady
Crude prices are showing minimal change, fluctuating between small gains and losses. West Texas Intermediate is currently down 0.2% at $87.53, while Brent crude, the international benchmark, has seen a 0.4% decrease at $90.56. Despite experiencing slight increases in the past five days, both contracts are still down approximately 5% from a month ago.
Potential Impact on Oil Market
The conflicts in the Middle East often have profound effects on the oil market. With Israeli air attacks on Gaza intensifying as part of the preparation for a ground assault, diplomats are working vigorously to ensure the safety of their citizens and prevent the conflict from spreading to neighboring countries, including Lebanon or Iran.
Ongoing Diplomatic Efforts
Hamas terrorists initiated the attack on Israel, resulting in a significant loss of life. President Joe Biden is contemplating a visit to the region to assess the situation firsthand. Secretary of State Antony Blinken has scheduled a return trip to Israel on Monday following his meetings with seven Arab leaders across six nations.
Potential Rise in Oil Prices
Financial analysts have issued warnings that oil prices could surge to $100 per barrel if more countries become involved in the war.