NEW YORK (NEWSnet/AP) — Oil prices, which were already volatile, are rising as weekend violence in the Middle East results in unease among financial markets worldwide.

The area under conflict is not home to major oil production, but fears that the fighting could spill into the politics around the crude market sent a barrel of U.S. oil up 3.9% to $85.96. Brent crude, the international standard, rose 3.5% to $87.57 per barrel.

One potential outcome is that the Israel-Hamas fighting could lead to a slowdown in Iranian oil exports, which have been growing this year, according to Barclays energy analyst Amarpreet Singh.

It could also hurt the possibility of a potential improvement in relations between Israel and Saudi Arabia, which is the world’s second-largest producer of oil. Traders may be taking off some bets that Saudi Arabia would be willing to raise its oil output to help secure a deal on Israel with the United States, according to Singh.

Oil prices had already been volatile leading into the weekend.

A barrel of U.S. crude jumped from less than $70 during the summer to more than $90 last week, raising the pressure on inflation and the overall economy. It pulled back last week before jumping again after the fighting began in Israel.

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