Oil prices rise by 4% as Israel-Palestine conflict disrupts the market after the Israel HAMAS war began on Oct 7, 2023. Oil prices rose by over 4.5 percent to $87 per barrel after the war took place in the Middle East raising geopolitical tensions in the region.
Impact of Israel-Hamas War on “Oil Prices”
Israel and Palestine are not oil-producing countries but both belong to the Middle East and the states of the Middle East are providers for global oil supply. Now the tensions among the states of the Middle East have risen because of ongoing conflict between Israel and HAMAS.
Oil prices surge as West Asia tensions escalate amidst Israel-Hamas conflicthttps://t.co/ZQE1PLEr2P— WION (@WIONews) October 9, 2023
Chief Investment Strategist at Geojit Financial Services, V K Vijayakumar expressed uncertainty for markets over the ongoing war. Vijayakumar showed his concerns regarding India as it is one of the major oil importer countries. He said, “Nobody knows how this war is going to evolve. From the market perspective, it is important to understand that even though the death and destruction are tragic, presently it is unlikely to cause major disruption in oil supplies, thereby, impacting major oil importers like India”.
#MarketOutlook For the Day Dr. V.K. Vijayakumar, Chief Investment Strategist @GeojitFinancial#MarketUpdate #StockMarketindia #Sensex #Nifty #TradingView #intraday #TradingTips #Traders #CrudeOil #Investors #markets #IsraelPalestineWar #hamasattack #stockmarkets #GeojitFinancial pic.twitter.com/W3ANSFapcc— Geojit Financial (@GeojitFinancial) October 9, 2023
Nomura reports, “Events in the Middle East over the weekend (i.e. attack on Israel) presents a risk for stocks as such events could possibly lead to a surge in oil prices thus putting at risk the recent US disinflation narrative, in our view.” Nomura is a Japanese middle-market investment bank with worldwide operations.
The war between Russia and Ukraine is already going on. And now Israel has declared war on Palestine after the attacks by HAMAS on Israel. As a result, Oil prices rise as the Israel-Palestine conflict disrupts the market.
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