The Middle East conflict has lifted oil prices on concern that it could spread.
Dreamstime
Oil and gold prices were falling early Monday as Israel held back from starting an expected ground invasion of Gaza.
The violence in the Middle East has raised concerns that oil supplies from the region may be cut and encouraged investors to seek safe-haven assets such as gold. For now, the conflict isn’t escalating or widening to other countries.
Hamas launched its Oct. 7 attacks on Israel from Gaza. Israel told people in Gaza to move south, ostensibly ahead of a ground assault on the northern part of the region. Over the weekend, Israel continued airstrikes. At the same time, a convoy from Egypt delivered food, water, and medicine into Gaza for the first time since the initial Hamas attack.
There were also skirmishes between Israeli forces and Hezbollah on the border with Lebanon.
Tensions in the region remain high, but aren’t boiling over into wider conflict yet. The worry for investors is that the fighting could formally involve Iran or Saudi Arabia, both major producers of oil.
West Texas Intermediate, the U.S. standard for oil prices, fell 0.8% to $87.38 a barrel. Prices topped $90 at the end of last week. Brent crude, the international standard, slipped 0.6% to $91.64.
Gold, which has been flirting with the psychologically important price of $2,000 an ounce, fell 0.2% to $1989.90.
Write to Brian Swint at [email protected]
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