Oil prices surge sharply as violence in the Middle East rocks markets

Oil prices rose by more than four dollars a barrel during trading in Asia today. Clashes between Israel and the Palestinian Islamist movement Hamas have deepened political uncertainty in the Middle East and heightened concerns about supplies.

At around 9:15 CEST, the price of North Sea Brent crude was up 3.2 percent at 87.25 dollars a barrel. US light crude WTI was up 3.6 percent at 85.78 dollars a barrel at the same time. Earlier in the session, prices for both grades rose by more than four dollars.

„Rising geopolitical risk in the Middle East should support oil prices. Higher volatility can be expected,“ analysts at ANZ Bank said in a report to clients.

The rise in oil prices reversed last week's downward trend, when the commodity recorded its steepest weekly drop since March. Brent crude fell 11 percent last week, while WTI crude dropped by more than eight percent amid concerns about high interest rates and their impact on global demand.