BREAKING: Oil jumps, equities drop on Middle East escalation

Tensions in the Middle East escalated significantly this weekend after Hamas, Palestinian fundamentalist organization, launched a massive surprise missile strike on Israel on Saturday, accompanied by ground incursions into settlements near Israel-Gaza border. Israeli defense forces responded by engaging in active combat with attackers as well as by launching airstrikes on targets across Gaza Strip.

This is a much more serious escalation between Israelis and Palestinians than in recent years or even decades. Hostilities are continuing and Israeli authorities said that their country is in a state of war and conflict will not be a short one. Western countries have condemned the Hamas attack and expressed their support for Israel's right to self defense while Arab countries have condemned violence and offered their support in finding a diplomatic solution.

Risk-off moods can be spotted on the markets following the weekend with US and European index futures opening around 0.6-0.7% lower. Indices from China and India are also pulling back. Precious metals trade over 1% higher. The biggest moves can be spotted on the oil market with Brent and WTI trading around 3.5% higher at press time.

Source: xStation5