As violent military clashes between Israeli and Hamas forces heightened over the weekend, the volatility of politics throughout the Middle East, and oil prices rose by more than $4 a barrel in early Asian trade on Monday.
By 0120 GMT, Brent crude was up $4.18, or 4.94%, to $88.76 per barrel, while U.S. West Texas Intermediate crude was up $4.23, or 5.11%, to $87.02 per barrel.
The increase in oil prices reversed last week's downward trend - the biggest weekly fall since March. Amid concerns about rising interest rates and their effects on demand globally, Brent dropped by about 11%, and WTI fell by more than 8%.
The deadliest military assault on Israel in decades was launched by the Palestinian Islamist group Hamas on Saturday, killing hundreds of Israelis and sparking a wave of Israeli air attacks on Gaza in retaliation that continued through Sunday.
Although there is a low chance that the oil supply would be interrupted immediately, there are worries that the conflict could turn into a larger proxy war that could involve Iran and the United States.
Concerns about the severity of the situation increased as the battle in the region entered its third day and the total number of fatalities crossed 1,100.
(Photo: AFP)
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