(Bangkok) Crude oil prices jumped on international markets on Monday, while stock prices were lower, after the Israeli government declared war following deadly Hamas attacks launched from the Gaza Strip .
Oil prices have gained around US$3 per barrel as conflicts in the Middle East often raise the specter of supply disruptions.
“Disruptions or escalations in the region can have significant implications for energy markets, global supply chains and geopolitical dynamics,” explained analyst Stephen Innes of SPI Asset Management.
The fighting has yet to have a discernible impact on oil production, but geopolitical escalations in the Middle East typically lead to a “buy first, ask questions later” response, he said.
Oil prices had retreated in recent days from highs in the mid-$90 range in September.
As of Monday morning, U.S. benchmark crude oil was up $3.12 at $85.91 a barrel on the New York Mercantile Exchange. He was up 48 cents on Friday.
The death toll from the fighting in the Middle East, over two days, has exceeded 1,100 dead and thousands wounded on both sides.
Palestinian activist groups said they were holding more than 130 prisoners on the Israeli side.
Around the world, stock markets fell on Monday in response to the start of the war last weekend.
The U.S. bond market will be closed Monday for Columbus Day, but the New York Stock Exchange and NASDAQ will be open. The Toronto Stock Exchange will also remain closed on Monday due to Thanksgiving.
In Germany, Frankfurt lost 0.7% and Paris slipped 0.4%, while London gained 0.3%.
In New York, before the markets opened, the expanded S index
In Asia, Shanghai reopened after a week-long holiday, falling 0.4%. Hong Kong’s Hang Seng gained 0.2%.
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Tokyo and several other Asian markets were closed to observe a public holiday Monday.
