Hamas Attacks on Israel Raise Concerns of Higher Oil Prices Amid Iran Tensions

War erupts as Hamas attacks Israel, raising concerns about impact on oil markets and Iran's response as key backer of Hamas.

Traders don't expect a major price surge but are watching Iran closely. Retaliation could threaten vital oil shipping through Strait of Hormuz.

Conflict emerges as global crude supply tight on Saudi/Russia production cuts. Prices hit nearly $100/barrel last month.

If Israel strikes Iran, prices could spike on supply disruption fears. Stronger enforcement of Iran sanctions could mean less oil exports.

In extreme case, Iran could block Strait of Hormuz. But Saudi spare capacity provides buffer to cover any disruption.