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Israel/Hamas Escalation Prices in Crude Premium

OIL

The Israel-Hamas conflict escalated further overnight – with confirmation that the Israeli military had put a “relatively large” contingent of troops and tanks into northern Gaza in order to attack several Hamas militant targets in the area. While the incursion at present looks short of a full ground operation in the territory, it has caught markets by surprise given US pressure on the Israeli government to delay and full invasion.

* Biden and Netanyahu spoke by phone overnight, at which they discussed methods to secure the release of hostages and support aid delivery in the Gaza Strip. Biden again called for a two-state solution.

* EU leaders are set to meet today for a summit at which their failure to present a united front on the Middle-East will be up for debate. Amid reports of a lack of fuel, medical and food supplies, French President Macron has confirmed France are to send a navy ship to “support” hospitals in the Gaza Strip.

*Brent priced in a ~$2/bbl premium on the ground invasion news Wednesday, breaking over $90/bbl which has started to come off slightly Thursday.

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