Thai Energy Ministry monitoring oil price surge amid Israel war

The price of oil had jumped 4% at close of trading on Monday amid concern that the conflict would disrupt supplies from the Middle East.

Thailand ships 57% of its crude oil from Middle Eastern countries, according to the Energy Ministry. However, the Kingdom has around two months of supply in reserve as a buffer against any disruptions, including an escalation of the Israel-Hamas war.

The price rise came as the conflict entered its third day following the surprise attack as Hamas militants broke out of the Gaza Strip on Saturday.

The conflict also pushed gold prices upward as investors sought a safe haven.

Meanwhile, the energy sector drove stock prices higher, resulting in gains on the US stock market on Monday.

West Texas Intermediate (WTI) crude oil futures contracts for November delivery rose by US$3.59, closing at $86.38 per barrel. Brent crude futures for December rose by $3.57, closing at $88.15 per barrel.

The rising prices boosted energy sector stocks, leading the US stock market to close in positive territory on Monday.

The Dow Jones was up 197.07 points (0.59%), closing at 33,604.65 points. S&P 500 rose by 27.16 points (0.63%), closing at 4,335.66 points, and Nasdaq added 52.90 points (0.39%), closing at 13,484.24 points.

Israel has retaliated to the attack by imposing a complete blockade on Gaza, cutting off food, water, electricity, and gas supplies. The Israeli military is also continuing its airstrikes, targeting various locations in the densely populated Palestinian territory. At least 1,300 people had been killed on both sides as of Monday, according to officials in Gaza and Israel. However, the death toll is likely to be far higher as Israeli forces pound buildings and apartment blocks in Gaza from the air.

Vivek Dhar, head of mining and energy commodities research at CommBank, commented, “If this conflict drags on, it will have a significant impact on the market.”