Monday, December 29, 2008

Israel attacks against Hamas in Gaza could lead to oil supply disruption

A story from Jerusalem early Monday Dec 29 on CNN maintains that Israel is in “all out war” against Hamas with strikes on Gaza, which started Dec. 27, so far resulting in over 300 deaths.

Oil prices rose slightly and stock market prices fell Monday somewhat in additional uncertainty. But oil prices had fallen to below $40 a barrel because of recession.

The lingering fear is that Israel’s behavior could cause a 70s style embargo or incite terrorist strikes against oil production facilities in Saudi Arabia to punish the west. Oil prices have been so volatile in 2008 that it is almost impossible to predict what would happen.

The link for the CNN story is here.

Tim Paradis, AP business writer, has a story this morning on the fear that the sudden Middle East explosion could disrupt oil production here.

Monday night (Dec 29) ABC "Nightline" showed a Palestinian in Gaza with a Yankee pinstripe mourning the loss of five children to an Israeli rocket.

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