\n<\/p>\n
After a surge this summer when oil prices approached $100 a barrel, the cost of crude was tumbling again. Now a Middle East war<\/a> has sent it right back up.<\/p>\n Traders drove up the price of oil as much as 5 percent as fighting escalated between Israel and Hamas after the terrorist group attacked the Jewish state from Gaza over the weekend.<\/p>\n No oil is produced in the Gaza area, and Israel produces only a small amount of oil for its own use, energy analysts noted. But experts warned that prices could go higher if the fighting were to spread around the region, especially if Iran becomes actively involved in the war.<\/p>\n \u201cAny expansion of battles will have potential repercussions on oil markets,\u201d according to a note released on Sunday by Citi investment research.<\/p>\n Energy prices had been slumping over the last week in part because of recent unexpectedly strong growth in the output of oil from several countries, including some in the Organization of the Petroleum Exporting Countries, the oil cartel. Two main reasons were that economic growth in China remains weak, and high interest rates have spurred concerns over growth in Europe and the United States.<\/p>\n The average price for a gallon of regular gasoline in the United States on Monday was $3.70, 11 cents below a week ago, according to the AAA motor club.<\/p>\n But that relief for drivers is now in jeopardy following a stunning geopolitical event, much as Russia\u2019s invasion of Ukraine sent oil and natural gas prices skyward last year.<\/p>\n \u201cWar in the Middle East can be generically bullish for crude,\u201d said Clearview Energy Partners, an analytics firm, in a research note on Sunday night, especially if the conflict is prolonged.<\/p>\n Global oil benchmarks rose a little over 5 percent when markets opened after the weekend, with the West Texas Intermediate oil price rising to $87 a barrel, a relatively modest jump when war is breaking out in the oil-rich Middle East. The increase followed several days when prices slumped, bottoming out near $82 a barrel, on the expectation that demand for oil was waning. The inventories of American gasoline climbed last week to above the five-year average for this time of year. Only two weeks ago, many analysts were predicting a surge to $100 a barrel oil<\/a>.<\/p>\n Prices moderated later on Monday, in a choppy trade, with crude about 4 percent higher.<\/p>\n