Oil prices jumped by 4% on Monday on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.
West Texas Intermediate (WTI), the benchmark for US oil, rose to more than $86 (£70) a barrel.
The price of Brent crude also surged in early Asian trading.
The price of Brent crude also surged in early Asian trading.
A wave of attacks launched by the Hamas militant group on Saturday was the biggest escalation between the two sides for decades.
Western nations condemned the attacks but a spokesperson for Hamas told the BBC that the group had direct backing for the attack from Iran.
Iran denied involvement in the attack at at UN Security Council meeting in New York on Sunday, Reuters reported. But Iranian President Ebrahim Raisi has expressed support for the attack.
“The risk premium on oil is rising due to the prospect of a wider conflagration that could spread to nearby major oil producing nations such as Iran and Saudi Arabia,” energy analyst Saul Kavonic told the BBC.
“If the conflict envelops Iran, which has been accused of supporting the Hamas attacks, up to 3% of global oil supply is at risk,” he added.
Oil prices jumped by 4% on Monday on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.
The price of Brent crude also surged in early Asian trading.
West Texas Intermediate (WTI), the benchmark for US oil, rose to more than $86 (£70) a barrel.
A wave of attacks launched by the Hamas militant group on Saturday was the biggest escalation between the two sides for decades.
The price of Brent crude also surged in early Asian trading.
The price of Brent crude also surged in early Asian trading.
A wave of attacks launched by the Hamas militant group on Saturday was the biggest escalation between the two sides for decades.
Western nations condemned the attacks but a spokesperson for Hamas told the BBC that the group had direct backing for the attack from Iran.
Iran denied involvement in the attack at at UN Security Council meeting in New York on Sunday, Reuters reported. But Iranian President Ebrahim Raisi has expressed support for the attack.
“The risk premium on oil is rising due to the prospect of a wider conflagration that could spread to nearby major oil producing nations such as Iran and Saudi Arabia,” energy analyst Saul Kavonic told the BBC.
“If the conflict envelops Iran, which has been accused of supporting the Hamas attacks, up to 3% of global oil supply is at risk,” he added.
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