Israeli soldiers are positioned outside kibbutz Beeri near the border with the Gaza Strip on October 17, 2023, in the aftermath of an October 7 attack by Palestinian militants. US President Joe Biden will visit Israel on October 18 in a show of"ironclad" support as Washington tries to prevent the escalating war against Hamas in Gaza from spilling over into a wider Middle East conflict.
The prospect of Iran, a supporter of Hamas and sworn enemy of Israel, being drawn into the conflict presents one of the main risks for the energy market. Iran could respond by blocking the Strait of Hormuz, the most important oil transit zone in the world, with a daily flow of more than 17 million barrels -- 30 percent of all oil traded by sea --, according to Seb Research.
The shocks led to crude prices jumping within a few months, bringing developed economies to their knees. US giant Chevron has suspended activities at its Tamar platform, off the Israeli coast, on instructions from the country's authorities. Asian markets fell and oil prices extended gains yesterday on worries that an expected ground invasion of Gaza by Israel...