Monday, November 19 15:50:47
Oil rose to $111 a barrel day as escalating violence in the Middle East fuelled concerns over oil supplies from the region and as hopes rose that a U.S. budget crisis could be averted.
Investors fear the Israeli-Palestinian conflict may draw in other countries and possibly disrupt energy exports from the region, which supplies more than a third of the world's crude.
Israel raised the stakes on Monday, saying it was ready for a ground invasion in the Gaza Strip, but preferred a diplomatic solution.
Risk analysts say it is unlikely the confrontation between Israel and Gaza will spill out into a wider conflict, but investors were wary, knowing previous Middle East wars have led to oil embargoes and temporary disruptions to energy supplies.
Brent futures were up $2.30 to trade at $111.25 by 1454 GMT. U.S. crude oil rose $1.87 to trade at $88.79.