Oil markets experienced mixed movements early on Tuesday as investors weighed the geopolitical risk associated with the escalating conflict in the Gaza Strip. The New York Mercantile Exchange oil futures and Brent crude on the Intercontinental Exchange showed varying trends, reflecting the uncertainty surrounding the situation.
The Israeli military carried out a series of airstrikes and shelled targets in the besieged Gaza Strip, categorizing it as the first phase of dismantling Hamas’s military infrastructure. Observers believe that Israel could be preparing for a potential ground offensive, as it called up 300,000 army reservists and deployed heavy artillery near the borders with Gaza. In an effort to tighten its grip, Israel imposed a full siege on the Gaza Strip, severely restricting essential supplies, including electricity, water, and food, affecting the lives of its residents.
While there are currently no indications that the conflict could spill over beyond the Israel-Hamas war, concerns persist among traders over the possibility of a broader conflict in one of the world’s major crude-producing regions. Despite these worries, experts believe that the availability of oil is unlikely to be immediately impacted by the escalating violence.
