Oil steadies near US$86 after initial jolt from Israel-Hamas war

Oil steadied after the biggest jump in six months as markets digested the fallout from Hamas’s surprise attack on Israel over the weekend as well as the prospect of new economic stimulus measures in China.

Nearly 2,000 people have died so far as the conflict in Israel, which has the potential for wider geopolitical ramifications, entered a fourth day. West Texas Intermediate settled below US$86 a barrel after jumping more than $3 on Monday.  

While crude futures are moderating, rising tensions in the Middle East are keeping oil markets on alert, said Dennis Kissler, senior vice president for trading at BOK Financial Securities.

“If we continue to see escalation between Israel and Hamas, it’s just a matter of time until it reaches into oil-producing areas,” Kissler said. “All eyes will be watching Israel’s progress and any intentions they may have into Iran.”