BP plc (NYSE:BP) shares are trading higher by 2.95% to $38.37 going into the close of Monday’s session. Shares of energy stocks are trading higher as the Israel-Hamas conflict drives oil supply uncertainty.
Investors are watching events closely as rocket attacks by Hamas, the Palestinian militant organization in control of the Gaza Strip, have resulted in casualties exceeding 1,100 people, including 700 Israelis, with over 2,000 injuries and numerous individuals held captive in Gaza.
Israel’s military also called in 300,000 reserve forces Monday in order to facilitate a siege on the Gaza Strip and halt the transport of supplies, including food and fuel.
See Also: What Israel’s War With Hamas Means For Gold And Other Safe Haven Assets
Geopolitical conflicts in regions with significant oil production or transportation infrastructure, such as the Middle East, can lead to concerns about the stability of oil supplies.
BP is a major player in the global oil market, and any disruptions in the oil supply chain tend to increase oil prices, benefiting companies like BP that are involved in oil exploration, production and distribution.
As the conflict escalates, there is a heightened risk of supply disruptions in the Middle East, which is a major oil-producing region. This uncertainty can cause oil prices to surge.
BP’s profitability is directly linked to the price of oil, so higher oil prices can lead to increased revenues and improved financial performance for the company.
See Also: Goldman Sachs Bullish On Crude Oil With Israel, Hamas At War
According to data from Benzinga Pro, BP has a 52-week high of $41.38 and a 52-week low of $29.54.
