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Israel-Palestine conflict leads to oil price surge, Ethereum Foundation sells ETH resulting in a sharp drop

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Israel-Palestine conflict leads to oil price surge, Ethereum Foundation sells ETH resulting in a sharp drop

Recently, the US labor market data performed better than expected, and the increase in crude oil prices due to the Israel-Palestine conflict over the weekend has raised concerns among investors about a resurgence of inflation. The Federal Reserve may raise interest rates again at the end of the year or maintain high rates for a longer period, delaying the expected rate cut next year. The US stock market opened low for two consecutive days and then rebounded. Bitcoin was not affected by the war and remained stable, but Ethereum showed relative weakness due to news yesterday that the Ethereum Foundation was selling coins, leading to a 3.19% decline in the past 24 hours, far exceeding BTC's -1.14%.

Conflict Continues in Israel-Palestine, Oil Prices Surge 4% on Monday

Geopolitical risks escalated following attacks by the Palestinian militant group Hamas on Israel over the weekend. According to CNBC, at least 900 Israelis have died in Hamas' so-called Aksa Flood operation, while over 687 Palestinians have died in Israel's retaliatory attacks on Gaza.

Image Source: CNBC

Although neither country is a major oil producer, the conflict being in a crucial gateway to oil production and export regions has led to a surge in WTI crude oil futures from $82 to $86.4 on Monday, a 4.3% increase. Earlier, oil prices had already surged to a high of $93 by the end of September due to production cuts, and now with the conflict exacerbating, investors are once again worried about the resurgence of inflation.

Ethereum Foundation Sells 1,700 ETH

According to data from Scopescan, the Ethereum Foundation exchanged approximately 1,700 ETH, worth $2.76 million, for USDC yesterday. As the Ethereum Foundation has previously sold coins at highs multiple times, this move has attracted attention from the community. ETH showed relatively weak performance yesterday, dropping 3.19% in 24 hours, far exceeding BTC's -1.14%.