Oil prices rise on fear of Middle East supply disruptions

Oil prices jumped by 4% on Monday on concerns that the situation in Israel and Gaza could disrupt output from the Middle East.

West Texas Intermediate (WTI), the benchmark for US oil, rose to more than $86 (£70) a barrel.

The price of Brent crude also surged in early Asian trading.

The Israel and Palestinian territories are not oil producers. But the Middle Eastern region accounts for almost a third of global supply.

A wave of attacks launched by the Hamas militant group on Saturday was the biggest escalation between the two sides for decades.

Western nations condemned the attacks but a spokesperson for Hamas told the BBC that the group had direct backing for the attack from Iran. read more