Oil rises 5 percent as geopolitical concerns mount

NEW YORK (Reuters) – Oil prices rose 5 percent on Monday as Israel’s deepening incursion into Gaza and a dispute between Russia and Ukraine over natural gas heightened fears of supply disruptions.

U.S. crude gained $2.47 to settle at $48.81 a barrel, after touching a three-week high of $49.28. London Brent crude rose $2.71 to $49.62 a barrel.

Oil prices have risen from around $35 a barrel since Israel launched its Gaza offensive on December 27, heightening fears of possible disruptions of crude supplies from the Middle East.

An Iranian military commander called for Islamic producers to cut supplies to Israel’s supporters in Europe and the United States, the official IRNA news agency reported on Sunday.

But an OPEC source told Reuters the Iranian comments would not sway other members of the Organization of the Petroleum Exporting Countries.

Reuters