Hamas Attack on Israel Boosts Oil & Energy Giants

  • USOil
    (${instrument.percentChange}%)

Hamas-Israel Conflict

Militant Palestinian Group Hamas, which is a designated terrorist organization by the US and other countries launched a deadly and multipronged attack on Israel on Saturday, reigniting Middle East conflicts. US President Biden "unequivocally" condemned the "appalling assault" [1], while EU Commissioner von der Leyen stood with Israel, which she said has "the right to defend itself - today and in the days to come". [2]

Israel's security cabinet approved a "war situation" [3] and the defense forces retaliated with the large-scale military operation Swords of Iron [4]. The US Defense Secretary Lloyd Austin sent aircrafts and ships close to the region. [5]

Attention has now turned to Iran, for potential involvement in the attack. According to the Wall Street Journal, Hamas members said that Iranian officials helped plan and approved the strike [6]. Speaking on CNN's State of the Union, US Secretary of State Antony Blinken said that "in this specific instance, we have not yet seen evidence that Iran directed or was behind this particular attack" [7]. Regardless of whether there was involvement and to what extent, a lift of sanctions on Iranian oil becomes harder.

Market Reaction

Market reaction to the Hamas-Israel conflict was immediate. USOil rises today, as the events can affect supply and demand of oil and Iran's return prospects, although it is early to assess the full impact. The events unfold at a time when supply is tight and inventories dwindle, due to the massive OPEC+ cuts. On the other hand, there are fears around demand as China's recovery is failing, while the US Fed is pushing the higher-for-longer narrative.

Trade the News: View our Economic Calendar

Energy giants like BP (BP.uk) and Shell (SHEL.uk) also opened higher. Major airliners such as Lufthansa (LHA.de) and Ryanair (RYA.ie) which is one of my stock to watch in Q4, drop at the start of today's trading, as they already face increasing fuel costs.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 09 Oct 2023 https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/07/statement-from-president-joe-biden-condemning-terrorist-attacks-in-israel/

2

Retrieved 09 Oct 2023 https://twitter.com/vonderleyen/status/1710777462391443590

3

Retrieved 09 Oct 2023 https://www.gov.il/en/departments/news/spoke-war081023

4

Retrieved 09 Oct 2023 https://twitter.com/IDF/status/1710580568302223374

5

Retrieved 09 Oct 2023 https://www.defense.gov/News/Releases/Release/Article/3551716/statement-from-secretary-lloyd-j-austin-iii-on-us-force-posture-changes-in-the/

6

Retrieved 09 Oct 2023 https://www.wsj.com/world/middle-east/iran-israel-hamas-strike-planning-bbe07b25

7

Retrieved 02 Mar 2024 https://www.state.gov/secretary-antony-j-blinken-with-dana-bash-of-cnns-state-of-the-union-3/

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Exchange: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}
Disclosure

Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.