Neither Israel nor the Palestinian territories are major oil producers, but proximity to key oil-producing nations like Iran and Saudi Arabia has triggered anxieties. Global oil prices witnessed a significant upswing due to mounting concerns surrounding the escalating conflict between Israel and Gaza. These concerns have raised apprehensions about potential disruptions in the Middle East, a region responsible for nearly one-third of the world's oil supply. Brent crude, the international benchmark, surged by more than $3, reaching $87.68 per barrel, with U.S. oil prices also experiencing an increase. Although Israel and the Palestinian territories are not major oil producers themselves, the conflict's proximity to key oil-producing nations such as Iran and Saudi Arabia has sent shockwaves through the market. The recent escalation in hostilities between Israel and Hamas has drawn condemnation from Western nations. A Hamas spokesperson claimed direct support from Iran, a significant oil-producing country, although Iran denied any involvement during a UN Security Council meeting. Energy analyst Saul Kavonic explained that crude oil prices surged due to apprehensions about a potential broader conflict that could engulf major oil-producing nations like Iran and Saudi Arabia. Kavonic warned that if Iran, accused of supporting Hamas attacks, becomes embroiled in the conflict, up to 3% of the global oil supply could be at risk. Caroline Bain, the chief commodities economist at Capital Economics, pointed out that despite U.S. sanctions, Iran has steadily increased its oil production throughout the year. This surge in production, combined with geopolitical tensions, has created a supply-demand imbalance, driving prices higher. The Strait of Hormuz, a crucial oil trading route, adds to these concerns. Approximately one-fifth of the world's oil supply could be jeopardized if disruptions occur in this strategic passage. The uncertainty surrounding the situation has also prompted investors to seek refuge in safe-haven assets like U.S. Treasury bonds and the dollar. This surge in oil prices follows a pattern of market volatility triggered by geopolitical events. Similar price increases were observed following Russia's invasion of Ukraine in 2022. Oil prices, which had dipped to around $70 per barrel in May of this year, have steadily risen as producers curtailed output to stabilize the market. OPEC+, a coalition of oil-producing countries, including major players like Saudi Arabia, implemented production cuts to support global oil prices, which constitute approximately 40% of the world's crude oil.