Russia's Putin sends shockwave to US and Israel over escalating war
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The surprise attack and Israel’s declaration of war in response to Hamas attack have left more than 1,100 dead and raised concerns that a potential broadening of the conflict could draw in the United States and Iran.
Israeli Defence Minister Yoav Gallant on Monday ordered a “complete siege” on the Gaza Strip as the military pounded the Palestinian territory with air strikes.
The Kremlin warned there was a “high risk” of a third party entering the war, after Washington pledged “rock solid” support for Israel and said it was moving warships closer.
The Bank of Israel launched the sale of up to $30 billion in foreign currency reserves, as it sought to curb volatility in its shekel currency.
However, the shekel has since tumbled to a seven-year low against the dollar.
“The shocking attacks in Israel have sent the price of oil soaring, as investors assess the potential for the conflict to disrupt supply in the Middle East, if other countries are drawn in,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“With the Israeli government warning of a long and difficult war, there are concerns that deep and incessant retaliative strikes on Gaza could potentially bring Iran into the conflict and have an impact on the flow of energy in the region.”
A decidedly risk-off mood also saw investors push into the safety of the dollar, which was up against the pound and euro, as well as the Australian and New Zealand dollars.
The yen, considered one of the safest currencies, strengthened against the greenback, though it still remains locked around 11-month lows.
Gold meanwhile gained around one percent in value. -APP/AFP
