An uneasy calm blankets the markets early on Monday as Israel gears up for a ground invasion of Gaza, following an attack by Hamas just a week ago. Crude oil prices remain largely unmoved, fluctuating between slight gains and losses. The West Texas Intermediate marker has dipped by 0.2% to $87.53, while Brent crude, the global benchmark, is down 0.4% at $90.56. Although both contracts have seen some upward movement in the past five days, they still remain about 5% lower than they were a month ago.
Historically, conflicts in the Middle East have had significant implications on the oil market. In light of the Israeli airstrikes on Gaza, which serve as a precursor to a possible ground assault, diplomats are urgently working to evacuate citizens from the area and contain the conflict within the region, keeping it from spreading to Lebanon or Iran.
Hamas launched an attack on Israel a week ago, resulting in the loss of 1,400 lives. President Joe Biden is contemplating a visit to the region to assess the situation firsthand. Furthermore, Secretary of State Antony Blinken will be returning to Israel on Monday after meeting with seven Arab leaders from six different nations.
Experts have warned that if more countries become involved in the war, oil prices could surge to an alarming $100 per barrel.
