Oil Prices Rise, Stocks Fall As Israel Declares War vs. Hamas

Oil prices surged, stock markets declined, and the Israeli currency fell this week as Israel declared war against Hamas.

While Israel is not a major oil producer, the escalating tensions in the oil-rich Middle East concerned investors who had been selling off oil in recent weeks.

While Israel is not a major oil producer, the escalating tensions in the oil-rich Middle East concerned investors who had been selling off oil in recent weeks, David Goldman and Michelle Toh reported for CNN.

Factors such as inflation, fear of a global economic downturn, and a correction in oil prices that surged in recent months had caused US oil to drop from around $95 a barrel in late September to slightly above $80 the previous week.

However, on Monday, US oil prices increased by 4% to over $86 per barrel, with Brent crude, the global benchmark, also rising by nearly 4% to almost $88 per barrel.

In the equity markets, US stocks, which had risen on Friday due to a strong American job market report, saw a slight decline on Monday.

The Dow dropped by 18 points (0.05%), while the S&P 500 and Nasdaq Composite declined by 0.4% and 0.9%, respectively. Global investors expressed concerns that the conflict in Israel could potentially spill over into the wider region, potentially impacting the fragile global economic recovery.

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