Middle East Turmoil Sends Oil Prices Soaring

Oil prices surged over 2% as clashes between Israel and Hamas raised concerns of a wider conflict in the Middle East. Brent crude rose by $2.28 to $86.86 a barrel, while U.S. West Texas Intermediate crude increased by $2.44 to $85.23 a barrel. Last week's decline in oil prices, driven by global demand concerns, was reversed due to the escalating tensions in the region. The conflict threatens to disrupt U.S. efforts to broker a Saudi-Israeli rapprochement, potentially impacting oil supply. The duration of the oil rally remains uncertain, with potential risks to global oil supply if the conflict expands to involve Iran.