Oil prices rallied on Monday amid concerns about potential disruptions to global oil supplies in the wake of an escalating conflict in the Middle East.
Additionally, OPEC raised its world oil demand forecasts for the medium and long term in an annual outlook.
Benchmark Brent crude futures jumped 2.8 percent to $86.91 a barrel, while WTI crude futures were up 3 percent at $85.23.
Over 1,100 people in both Israel and Gaza have been killed since Hamas launched its attack on Saturday morning.
The Israel and Palestinian territories are not oil producers, but the Middle Eastern region accounts for almost a third of global supply.
Iran denied any direct involvement in the attack but backed Hamas’s actions as an act of self-defense.
Analysts say that there is no immediate threat to oil supplies, but disruptions or escalations in the region can have far-reaching implications for energy markets, global supply chains, and geopolitical dynamics, if the conflict escalates.
WTI crude futures shed about 9 percent last week, marking the biggest weekly decline since March amid demand fears due to macroeconomic headwinds. Brent crude futures lost about 11 percent in the week.