Oil and gold prices rise after Hamas leader killed

LONDON (July 31) Prices of oil and gold were lifted as financial markets reacted to the killing of the Hamas political leader in Iran, which the Palestinian group said was from an attack by Israel.  

Hamas leader Ismail Haniyeh, who has acted as a negotiator in the ceasefire talks during the Israel-Gaza war, was killed in raid on his residence in Tehran.

Future prices of Brent crude oil jumped 2.5% to $80.03, reversing some of the sharp falls in the past month as ceasefire optimism had grown. 

Gold, meanwhile, rose to a week's high of $2,421.

Iran's Ayatollah Khamenei said a "severe punishment" awaits Israel and the prime minister of Qatar, a mediator in the negotiations between Israel and Hamas, suggested the killing could jeopardise the talks.

Israel's defence minister said the country is not seeking to escalate war, but is prepared to handle all scenarios, Reuters reported.

Analysts at Rabobank said: "With this further stoking concern of a broader conflict in the region, oil prices have unwound some of their recent weakness."

But with equities rising in Europe and Asia, they noted that the news "has failed to weigh upon risk appetite more broadly".

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