Avoid escalating

 Avoid escalating

After the unexpected strikes by Hamas on Israel on Saturday, the price of Brent crude oil increased by approximately 4% on Monday, reaching almost $88 per barrel. Oil exports from the area may be restricted if this war spreads to other regions of West Asia. 

Iran, given its links to anti-Israel organizations, may become a combatant in what has so far been an Israel-versus-Hamas conflict should the Israeli leadership somehow detect a bigger scheme behind the attack and take military action. Warming Relationships between Saudi Arabia and Israel seem prone to breakdown, upsetting a broad US strategy for the region, which might raise concerns about a bigger geopolitical goal supported by a Cold War-style anti-US alliance. It has also been argued that American supremacy in West Asia is under question, and hasty accusations may be made beyond Tehran as well. 

But it would be preferable if Israel avoided taking any action that would provoke broader confrontations. Not only would oil prices beyond $90 per barrel be problematic for India, which imports more than half of its oil needs and must keep its energy costs low, but another episode of global volatility would also be detrimental to the prospects of the whole globe.