Oil Prices Rise After Israeli Airstrikes Kill Leader of Hamas’s Militant Wing

Oil prices have risen following Israeli attacks in the Gaza strip which killed Ahmed al-Jabari, the leader of Hamas’s militant wing. Traders fear that the whole Middle East is reaching its limit and that something is about to blow which could seriously impact on the global oil market.

After more than 115 rockets have been fired into Israel from Gaza this week, Israel decided to retaliate. Claiming that they were ready to send ground troops into Gaza to end hostilities, Israel started with a series of airstrikes, which managed to kill the Hamas leader.

Prime Minister Silvan Shalom said that, “this is a clear statement that we won’t continue to tolerate this violence against us.”

John Kilduff, a partner at the New York energy hedge fund, Again Capital LLC, commented to Bloomberg that “the Israeli strike on Gaza has raised the security premium. The Israelis made it clear that this may be the first of many strikes. This episode raises tension in an already troubled region.”

Just recently Israel has also been involved in an incident with Syria, as firing tank shells across the border into Syria in retaliation to a series of mortar strikes earlier in the week.

Bill O’Grady, the chief market strategist at Confluence Investment Management, explained that “the Israelis and Hamas are lobbing missiles at each other, which isn’t unusual. The fact that Israel is also exchanging fire with Syria is increasing worry that everything is going to hit the fan.”

This post was originally published at Oil and is reproduced here with permission.

3 Responses to “Oil Prices Rise After Israeli Airstrikes Kill Leader of Hamas’s Militant Wing”

KozulkskijNovember 20th, 2012 at 8:32 am

and that something is about to blow which could seriously impact on the global oil market."
stuff like that,including the changed Prime Minister into Minister of Negev even if he is his co-prime makes people fool for all futher observations,simply to say:there group of individuals in government of both counties who reveniews depend on oil price,as result someone need to "pump oil can" all the way up to sponsor thoose secret group.I see nothing connecting the World oil supply and delivery with any of israely action,its politically influented news creation for promoting high oil prices at any cost untill it sartisfied

kozulskijNovember 20th, 2012 at 8:37 am

"and that something is about to blow" this sentense you can apply to any politician speech today and to any situation in EU,USA,Russia,what ever in the world-its a stupid government oil pro artickle from thoose which paid from governments coffins,Shame of the author!
We have oil overproduction,but appetite of world governments for reveniews from expensive oil is ridiculouse,most world knows-there is no smoke if not fire and here result-blowing from finger smoke-news on "something is about to blow" makes very big sense!Are think we are idiots and politically uneducated?Let us run government and we can achieve 500$ price for oil while you still stay to be author of such Wonder news!

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Emre Deliveli is a freelance consultant, part-time lecturer in economics and columnist. Previously, Emre worked as economist for Citi Istanbul, covering Turkey and the Balkans. He was previously Director of Economic Studies at the Economic Policy Research Foundation of Turkey in Ankara and has has also worked at the World Bank, OECD, McKinsey and the Central Bank of Turkey. Emre holds a B.A., summa cum laude, from Yale University and undertook his PhD studies at Harvard University, in Economics.

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