Oil Prices, Energy Stocks Jump As Gaza Ceasefire Risks Collapse On Rising Hamas-Israel Tensions

Oil prices climbed Monday, marking their strongest one-day surge in nearly a month, as geopolitical risks intensified following threats of a ceasefire breakdown in Gaza.

West Texas Intermediate crude futures jumped 1.8% to $71.90 per barrel by 2:30 p.m. ET, while Brent crude advanced 1.6% to $76.40 per barrel. The rally came as investors weighed the potential for renewed instability in the Middle East, a region responsible for nearly one-third of global oil production.

U.S. energy stocks also gained traction, with the Energy Select Sector SPDR Fund XLE rising 2%, while oil majors Exxon Mobil Corp. XOM and Chevron Corp. CVX climbed 1.6% and 0.8%, respectively.

Ceasefire At Risk: Hamas Accuses Israel Of Violations

Concerns over escalating conflict in Gaza grew after Hamas announced it would halt hostage releases, citing Israel's alleged failure to uphold the terms of the ceasefire.

Two Egyptian security sources told Reuters that mediators now fear a collapse in the deal, which was intended to facilitate a phased exchange of hostages and prisoners.

Since the agreement took effect in early January, Hamas has freed 18 captives, including dual U.S.-Israeli citizen Keith Siegel, in exchange for more than 730 Palestinian prisoners.

Yet, the next scheduled swap — three Israeli hostages for hundreds of Palestinian detainees — has now been delayed.

The fragile six-week ceasefire, which began in mid-January, was designed to facilitate the release by Hamas of Israeli hostages captured in its Oct. 7 attack in exchange for Palestinian prisoners held by Israel.

Trump's Middle East Strategy: What's Next For Gaza?

President Donald Trump, less than a month into his second term, has sent global shockwaves with his stance on Gaza. Over the weekend, he floated the idea of U.S. ownership of the war-ravaged enclave, describing it as a potential economic hub.

Speaking aboard Air Force One on Sunday, Trump suggested that Gaza could be bought and owned with assistance from regional partners.

"I’m committed to buying and owning Gaza…We’ll make it into a very good site for future development,” he said.

Last week, in a meeting with Israeli Prime Minister Benjamin Netanyahu, Trump suggested the United States assume control of the Gaza Strip. His proposal included relocating the roughly 2 million Palestinian residents to nearby nations like Egypt and Jordan, envisioning Gaza's transformation into the “Riviera of the Middle East.”

Trump said that Palestinians displaced from Gaza would not have the right to return under his proposal.

Trump's suggestion sparked significant international criticism. United Nations Secretary-General António Guterres cautioned against any measures that could be interpreted as ethnic cleansing.

Egypt and Jordan have firmly rejected the idea of resettling Palestinians from Gaza, citing concerns over regional stability and potential demographic shifts.

Read Next:

Stock Of The Day: Tariffs Could Mean A New Bull Market For Cleveland Cliffs

Photo via Shutterstock.