Due to escalating tensions between Israel and Hamas, oil prices surged, with Brent crude rising by 4.6% to $89.96.
Markets worry about the conflict affecting the Middle East, home to major oil producers like Saudi Arabia and Iran.
Since the conflict began, Brent crude’s value went up by 6.3%. On October 6, it was priced at $84.58.
Meanwhile, West Texas Intermediate (WTI), another oil type, also rose by 4.6% to $86.6.
People fear Iran might join the war, complicating global economics. Iran controls the Strait of Hormuz, a key path for 30% of the world’s oil.
Experts say that if this strait closes, oil prices could soar to $110. Oil prices also impact other products.
In Brazil, the cost of gasoline and diesel is going up. In May, Petrobras, Brazil’s state-run oil company, adjusted its pricing strategy.
Still, global oil prices play a big role in setting fuel prices in Brazil.
Background Oil Prices Surge Due to Middle East Conflict
The Israel-Hamas conflict has been significant. However, these two groups have been disputing territories for decades.
Hamas took control of the Gaza Strip in 2007 after defeating Fatah, another Palestinian group.
The area has seen multiple conflicts. Wars occurred in 2008, 2009, 2012, 2014, 2018, 2019, and 2021.
The United Nations tried to divide Palestine into Arab and Jewish lands. This led to further tension as Arabs claimed they got less valuable lands.