Oil prices dip as market eyes Middle East turmoil

STORY: Oil prices dipped on Tuesday (October 10).

That as cautious traders watched for potential supply disruption amid the ongoing conflict between Israel and Islamist group Hamas.

International and U.S. crude prices both fell over half a percent, but then recovered some ground.

The benchmarks had surged around 4% a day before amid fears that the clashes could spread beyond Gaza into the oil-rich region.

On Saturday (October 7), the Islamist group Hamas killed hundreds of Israelis and abducted dozens in the attacks.

Marking the deadliest raid into Israel’s territory since the Yom Kippur war 50 years ago.

Fighting continued into the night on Monday as Israel retaliated with a wave of air strikes on Gaza.

While Israel produces very little crude oil, markets worried that an escalating conflict could hurt Middle East supplies.

Israel’s port of Ashkelon and its oil terminal have been shut in the wake of the conflict, sources said on Monday.

Analysts bet prices could now feel even more pressure if the U.S. tightens sanctions on Iran, which some suspect colluded in the attack.