Gold Surges Above $2,000, Oil Rallies As Israeli Raids In Gaza Intensify, Disconnecting Communication

The situation in the Middle East continues to escalate as Israeli Defense Forces announced Friday they are intensifying their ground operations in the Gaza Strip, coupled with a relentless air bombardment that disrupted telecommunications in the enclave.

The IDF stated that Hamas continues to operate within and hides beneath the largest hospital in Gaza.

Israel’s Air Force is striking underground targets extensively and ground forces are preparing to expand their operations in the upcoming night, according to IDF Spokesman Rear Adm. Daniel Hagari.

Reports from The Times of Israel indicate the Gaza Strip witnessed a collapse in internet and phone services due to the intensified bombardment, effectively isolating its 2.3 million residents.

#StarlinkforGaza skyrocketed to the top of the trending hashtags on Elon Musk‘s social media platform, X. The Saudi news channel AlHadath has requested that Musk provide such support.

In response to the escalating conflict, the U.S. engaged in active discussions with Israel about a potential humanitarian pause to facilitate the release of hostages in Gaza, as reported by CNN.

National Security Council spokesman John Kirby expressed strong support for such a pause leading to hostage release, and reiterated the U.S. commitment to providing military assistance to Israel.

The Palestine Red Crescent Society said it lost all contact with its operations room in Gaza, along with its operational teams, following a significant increase in Israeli airstrikes on the enclave.

Hamas called upon the international community to take immediate action to halt Israel’s bombardment of Gaza, and urged Arab and Islamic nations and the international community to assume responsibility and take immediate steps to stop what it said are crimes and massacres against the Palestinian people, according to the Turkish outlet TRT World.

Market Reactions

These developments are having a significant impact on the global markets, leading to a surge in commodity prices. Gold, as represented by the SPDR Gold Trust GLD, recorded a gain of over 1%, surpassing the psychologically significant $2,000-per-ounce mark.

This amounts to a remarkable gold rally of more than 9% since the onset of the Israel-Hamas conflict. Additionally, crude oil prices soared, with WTI rising by more than 2% on concerns of potential supply disruptions in the Middle East.