Oil prices rise following Hamas attack on Israel
Oil prices have jumped on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.
Brent crude, the international benchmark, rose more than $3 to $87.68 a barrel, while US prices also rose.
Israel and Palestinian territories are not oil producers but the Middle Eastern region accounts for almost a third of global supply.
Hamas’s assault on Israel was the biggest escalation between the two sides for decades.
A spokesperson for Hamas told the BBC that the group had direct backing for the move from Iran – one of the world’s largest oil producers.
Iran has denied involvement in the assault but the country’s president has expressed support for the attack.
Energy analyst Saul Kavonic told the BBC that crude prices have risen “due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia”.
“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.