Global oil prices surged early on Monday, as the conflict between Israel and Hamas—which has resulted in at least 1,100 deaths so far—continued to escalate.
File Photo: Analysts believe the output of crude oil is unlikely to be impacted by the conflict.
The global benchmark Brent crude futures rose nearly 5% early Monday, before settling at $87.20 per barrel—up more than 3.1% from Friday.
The domestic West Texas Intermediate futures climbed past $86 per barrel, before settling at $85.7—more than 3.5% up since Friday.
Analysts cited by several outlets noted that the sharp spike in prices is likely a “knee-jerk” response to the conflict, as it is expected to have little overall impact on supplies as long as it does not escalate.
Gas Buddy’s Patrick De Haan noted that reports of Iran’s involvement potentially raise the stakes and lead to “more significant impacts on the price of oil,” but he insisted he believes there is more room for prices at the pump to continue to drop.
This is a developing story.