• While Israel and the Palestinian territories of the West Bank and the Gaza Strip do not serve as significant oil-producing regions, it is essential to note that other nations in the surrounding area play crucial roles in oil production.
  
• Several leading oil-producing countries, including Saudi Arabia, Iran, Qatar, Libya, Iraq, and Egypt, are in the Middle East.
  
• The initial escalation of natural gas prices at the onset of the conflict could intensify if any of these countries become embroiled. Iran is the most likely participant due to its explicit support for Hamas and historical Israeli strikes on Iranian targets.
  
• The repercussions have been notably felt in the Natural Gas market, witnessing a substantial increase in pricing (a 30-cent surge in prompt month pricing). This surge is attributed to the fact that these oil-producing nations also engage in natural gas production as a by-product of their oil drilling activities.

It’s important to note that conditions change quickly in this ongoing conflict, and the market’s reaction remains to be seen.