Oil Erases Israel-Hamas War Gains as Conflict Stays Contained

  • More Israeli forces entered Gaza; invasion advancing gradually
  • WTI settles below $83 a barrel, lowest in three weeks
WATCH: Energy markets are set to face another week of volatility as Israel began its long-anticipated ground invasion of Gaza. Su Keenan reports.Source: Bloomberg
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Oil slumped to the lowest price since the war in the Middle East began as Israel faces growing pressure to limit its bombardments to help hostage negotiations, keeping the conflict limited entering its fourth week.

West Texas Intermediate slid 3.8% to settle below $83 a barrel, the lowest in three weeks. Israel’s ground incursion into Gaza has so far been less extensive than some investors expected, and the risk premium that received a boost on Friday as the invasion commenced has since been wiped out. Losses deepened on Monday after crude slipped below technical support levels.