The ongoing Israel-Palestinian conflict has driven a substantial 6% increase in fuel prices. Crude oil prices in the international market experienced their most significant surge since February, with mounting concerns about supply disruptions amidst fears of an escalated conflict between Israel and the Palestinian group, Hamas. Consequently, fuel prices saw an unusually rapid rise on Friday, as reported by Reuters.
The conflict reignited on October 7th when Hamas initiated an attack in southern Israel, prompting Israel to launch a ground operation with the aim of eliminating Hamas. This followed weeks of intense aerial bombings and an ultimatum to evacuate nearly 1 million residents of the Gaza Strip within 24 hours. The situation has raised concerns that other countries in the Middle East may become embroiled in the conflict.
It is noteworthy that the United States had imposed sanctions on Russia following its attack on Ukraine last year, which included restrictions on tankers transporting fuel oil. As Russia is the world’s second-largest supplier of crude oil, these sanctions contributed to the upward trend in international fuel oil prices.