Brits are set for a surge in the price of oil following the escalated war of shootings and airstrikes in Israel and Palestine.
An all-out assault on Supernova Festival in Southern Israel's desert left more than 200 revellers dead on Saturday. According to several eye-witness reports, 50 attackers wearing Hamas military uniform appeared in vans and opened fire on young partygoers and their cars.
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Israel's death toll from the unprecedented bloodshed by the Palestinian militant group on its territory has risen to 900. In retaliation, a withering barrage of strikes on Gaza, has sent the death toll there scaling upward of 687.
Israel has since responded vehemently, causing the price of oil imported from neighbours to sky-rocket over fears there could become a shortage. The sudden shift bucks the trend of what was a gradual slump enjoyed by motorists who were forking out $2.25 (£1.84) less on a barrel of Brent crude – the international benchmark – than they will be in the aftermath of the weekend's horrors.
A single barrel is the equivalent of 159 litres. Israeli drivers are now faced with $86.83 (£71.05) barrels. A 5.2% hike has now steadied at a still significant 3.2% rise which will likely hit drivers at the pump in just under two weeks from now. Brits will recall the spike to fuel prices off the back of Vladimir Putin's oil-producing Russia first waging war on Ukraine last year.
Oil had been costing users less over the past month as a result of investors backing global demand to fall in the wake of higher interest rates. Michael Hewson, chief market analyst at CMC Markets, said: “The raising of the geopolitical temperature in the Middle East has seen a strong rebound in crude oil prices, which has seen some of last week’s big falls get reversed.”
On Monday, Israel ordered a pause on production of oil at US firm Chevron's Tamar natural gas field, BBC News reports. Given its location on the country's northern coast, Israel fears it could be targeted by Hamas as it's within range of Gaza Strip rocket fire.
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For all the current alarm, the country's energy ministry insists there's still enough fuel coming in to supply Israel's needs, particularly as Israel's largest offshore gas field, Leviathan, remains open.
Energy analyst Saul Kavonic told the BBC oil prices have shot up "due to the prospect of a wider conflagration that could spread to nearby major oil-producing nations such as Iran and Saudi Arabia". He added: "If the conflict envelops Iran, which has been accused of supporting the Hamas attacks, up to 3% of global oil supply is at risk."
The intensified Gaza conflict between Israel and Palestine has also had a knock on effect on airline shares prices as flights to Israel have been slashed and the UK Foreign Office among others, advising for only essential travel to be made to the region.
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