Oil Rises Following Hamas Attack on Israel

0659 GMT – Oil prices are rising sharply, with uncertainty over the situation in the Middle East mounting after the Hamas attack on Israel. Brent crude is up 3.3% to $87.39 a barrel while WTI is 3.7% higher at $85.81 a barrel, having hit $87.24 a barrel earlier in the session. “If western countries officially link Iranian intelligence to the Hamas attack, then Iran’s oil supply and exports face imminent downside risks,” Commonwealth Bank of Australia says in a note. Iranian oil exports have surged this year with the U.S. overlooking sanctions to ease tensions, the bank says. However, if Iran is linked to the attack, it could provoke a tougher stance from the U.S. “An immediate reduction in Iran’s oil exports risks pushing Brent futures above $100 a barrel in the short term.” (yusuf.khan@wsj.com)