Over the weekend Israel prepared a ground offensive of the Gaza strip. Oil prices are moving up as a result of these actions (see intraday chart below). The price move reflects a worry about escalation of war spreading to oil producing countries. If a cease fire is announced, oil prices start to fall back again. If a compromise cannot be found in the short-term, the cost of goods and services will increase. We hope that a peaceful solution can be found, but if this situation persists, oil stays up and net earnings will be negatively impacted.
Have a Happy Thanksgiving!