Oil prices rise, stocks slide on fears of broader Middle East war

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NEW YORK: Oil prices rallied and global stocks fell Wednesday on fears that the Israel-Hamas war could spill over into a regional conflict, after a strike at a Gaza hospital dealt a blow to President Joe Biden's diplomatic drive.

Crude futures briefly vaulted three percent higher as fears grew over broadening unrest that could destabilize the crude-rich Middle East, with some analysts predicting a possible return to $100 a barrel oil.Gold hit the highest level in over two months as investors sought the safe haven investment, with the dollar also picking up as investors sought refuge.

'Whoever turns out to be responsible the facts no longer matter given that most people have already made up their minds,' said Michael Hewson at CMC Markets, adding that this sent gold and oil prices up.European equity markets fell across the board and London was dented by news of stubbornly high UK inflation.Wall Street's main indices ended lower, with the Dow down 1.0 percent and the Nasdaq falling 1.6 percent.

 

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