Oil prices surged by over 4%, gold saw gains, and the safe-haven U.S. dollar saw a slight rise against the euro on Monday due to military clashes between Israel and the Palestinian Islamist group Hamas.

These conflicts raised concerns that the hostilities could expand beyond Gaza.

In contrast, U.S. stocks closed higher, propelled by the increase in energy shares paralleling the rise in oil prices. The S&P 500 energy index (.SPNY) concluded the day with a 3.5% gain.

Meanwhile, the Israeli shekel experienced a significant depreciation, with the dollar strengthening by approximately 3% to 3.955 shekels, Reuters reported.

The Bank of Israel had previously announced plans to sell up to $30 billion of foreign currency to maintain financial stability. Israeli government bonds also faced declines.

In response to the weekend’s devastating attack by Hamas gunmen, the Israeli military revealed on Monday that it had mobilized an unprecedented 300,000 reservists and imposed a complete blockade on the Gaza Strip, indicating potential preparations for a ground assault.

Written by staff