Oil prices spiked more than 3% on Monday after the militant group Hamas launched a surprise attack on Israel. The impact on gas prices in the U.S. will likely remain limited, however, as neither Gaza nor Israel produce much petroleum, experts say.

The overseas turmoil has yet to be reflected at American gas pumps. The average price for a gallon of regular gasoline in the U.S. on Monday was $3.70, down 11 cents from a week ago, according to AAA.

That said, drivers in the U.S. should keep an eye on the situation if they’re price-sensitive.

— Ana Teresa Solá

A full-blown war between Israel and Hamas has further stoked volatility in global markets, and one Wall Street firm said it could drive investors away from risk assets, mimicking the climate surrounding the Russia invasion of Ukraine in February, 2022.

“The conflict’s course is uncertain, but will very likely escalate, possibly contributing to a significantly risk-off global environment over the next 1-3 months,” Dan Alamariu, chief geopolitical strategist at Alpine Macro, said in a note. “Think of Russia’s invasion of Ukraine in 2022.”

— Yun Li

Read more about the war’s impact on the financial markets at CNBC’s live market blog.

United Nations Secretary-General Antonio Guterres called for all parties to allow urgent UN humanitarian access to trapped Palestinian civilians in the Gaza Strip.

“The humanitarian situation in Gaza was extremely dire before these hostilities, now it will only deteriorate exponentially,” Guterres told reporters at the UN in New York.

“Relief and entry of essential supplies into Gaza must be facilitated and the UN will continue efforts to provide aid to respond to these needs,” Guterres said, adding that the region needs medical equipment, food, fuel and other humanitarian supplies.

“I appeal to the international community to mobilize immediate humanitarian support for this effort,” Guterres added.

— Amanda Macias

Israeli Prime Minister Benjamin Netanyahu said he has been in constant communication with U.S. President Joe Biden on the heels of surprise attacks over the weekend.

“I would like to thank him on behalf of all citizens of Israel. The USA supporting Israel in every way,” Netanyahu said of Biden in a short televised speech.

The Israeli leader also warned of mounting disinformation, propaganda and fake news as tensions escalate in the region. He called for a national unity government in order to address the crisis.

“At the end of the war, all our enemies will know that it was a terrible mistake to attack Israel,” he added.

— Amanda Macias

President Joe Biden met this morning with Secretary of State Antony Blinken, National Security Advisor Jake Sullivan, Principal Deputy National Security Advisor Jon Finer, Homeland Security Advisor Liz Sherwood-Randall and White House Chief of Staff Jeff Zients to discuss updates on the ongoing situation in Israel, the White House said in a statement.

The White House said Biden will speak to several allies in the afternoon to share developments.

— Amanda Macias

A spokesman for Hamas said that the group will broadcast the execution of a hostage until Israel stops killing civilians in Gaza.

“From this hour onwards, we announce that every targeting of our people who are safe in their homes without warning, we will regretfully meet with the execution of one of our enemy’s civilian hostages, and we will broadcast this, under duress, in audio and video,” spokesman Abu Obeida said in a statement.

The statement further warned Israeli leadership of additional violence.

— Amanda Macias

Israel’s order of a total siege on the Gaza Strip is set to drastically worsen human conditions in an area that is already impoverished and described by human rights groups as the “world’s largest open-air prison.” Hamas, a designated Palestinian terrorist group backed by Iran, has governed the Gaza Strip since 2007. 

Gaza, the small strip of land that is home to over 2 million Palestinians within roughly 140 square miles, is one of the most densely populated territories on earth. It has been kept under an Israeli land, air and sea blockade since 2007.

The Palestinians living inside are surrounded by concrete walls and barbed wire fences, and cannot leave without Israeli-approved permits. They have limited access to the outside world, cannot trade outside of Gaza, and are frequently cut off from electricity and internet. Israelis and foreigners are not subject to the movement restrictions imposed on the Palestinians.

Several Israeli bombing campaigns over Gaza aimed at Hamas militants have destroyed much of the territory’s infrastructure and killed thousands of civilians since the blockade began. Palestinians have expressed fear at having nowhere to flee as Israel carries out airstrikes.

“If there is a hell on earth, it is the lives of children in Gaza,” UN Secretary-General António Guterres said in 2022.

Half of Gaza’s population is under the age of 19 but faces grim economic prospects, as 16 years of Israel’s blockade and ban on imports and exports has crippled the economy. The unemployment rate in Gaza is above 40%, more than 65% of the population is under the poverty line, and with 63% of Gazans are deemed food insecure, according to the UN. 

Israel says the blockade is necessary to protect its citizens from Hamas, which is deeply embedded in the territory. The United Nations classifies Israel as an occupier state over the Palestinian territories, whose occupations and annexations following the 1967 Six-Day War remain in violation of international law.

— Natasha Turak

The U.S. House of Representatives remains leaderless a week after Kevin McCarthy’s ouster in a historic no-confidence vote, raising concern in Washington that the disarray in Congress could hamper the U.S. response to the war in Israel.

A senior Biden administration official indicated to reporters on Saturday that the paralysis in the House could complicate U.S. efforts to support Israel.

“There probably is a role for Congress here, and without a speaker of the House, that is a unique situation we’re going to have to work through,” the official said in a telephone briefing.

House Majority Leader Steve Scalise and Judiciary Committee Chairman Jim Jordan, the top candidates to replace McCarthy, have both expressed unequivocal support for Israel.

House Republicans are expected to vote for a candidate to replace McCarthy on Wednesday morning. The candidate will need to secure 217 votes in the closely divided House to secure the post.

— Spencer Kimball

U.S. Senate Majority Leader Chuck Schumer said Monday the congressional delegation to China asked Beijing to use its influence with Iran to prevent the Israel-Hamas conflict from spreading.

“A bunch of us made the request that China use its influence on Iran to not allow a conflagration to spread,” Schumer told reporters in a briefing.

“They have influence with Iran in many different ways,” he said. “And we asked them to do everything they could to not have Iran spread this conflagration through themselves and through Hezbollah.”

U.S. officials at the briefing said that “the Chinese said they would deliver the message to the Iranians.”

Schumer and five other U.S. senators representing both the Republican and Democratic parties met with Chinese President Xi Jinping earlier on Monday.

Read the full story here.

— Evelyn Cheng

As the Israel-Hamas conflict leaves more than 1,300 dead and at least 100 taken hostage, disinformation is surging on social media. In particular, X, formerly known as Twitter, has become a hotbed of misleading or outright manipulated posts.

Government officials, “verified” accounts, and influencers are sharing content that is either taken out of context or has been manipulated. And while Hamas and militant-aligned groups are banned from X and most social media platforms, the terrorist organization still has a presence on Telegram.

It’s sharing propaganda videos through the messaging app, which are being picked up and shared by mainstream news outlets in the Middle East as well as regular users.

Users are also falling prey to video footage from prior clashes. With verification now a paid feature, it’s become harder to discern what is genuine footage and what may be misleading.

— Rohan Goswami

Israel has drafted 300,000 reservist troops, the most it has mobilized in its history, as it “goes on the offensive,” Israeli Defense Forces spokesman Rear Admiral Daniel Hagari said in a televised briefing.

“We are now carrying out searches in all of the communities and clearing the area,” he said. “We have never drafted so many reservists on such a scale. We are going on the offensive.”

IDF officials had earlier said that their primary goal was regaining control of Israeli territory around the Gaza border before ramping up the counter-offensive in Gaza. Israel has so far not sent troops into the territory, but has been pounding the densely populated and blockaded area with airstrikes since Saturday.

The high volume of reservists mobilized raises speculation of a possible ground invasion, but no such announcement has been made so far.

— Natasha Turak

A National Security Agency official said that so far the U.S. has not seen a major cyber attack on Israel on the heels of a string of weekend attacks.

“One of the big worries of course, is there a cyber component of it at this point? And I’d say not yet,” Rob Joyce, senior advisor for cyber security strategy to the Director of the National Security Agency, said according to NBC News, during the Cipher Brief national security conference in Sea Island, Georgia.

Joyce added that the U.S. expects Israel may face a cyber attack but did not share additional details.

— Amanda Macias

Secretary of Defense Lloyd Austin directed the movement of U.S. military assets closer to Israel to help provide protection.

The USS Gerald R Ford Carrier Strike Group, which includes aircraft carrier USS Gerald R. Ford, the Ticonderoga-class guided-missile cruiser USS Normandy, the Arleigh-Burke-class guided missile destroyers USS Thomas Hudner, USS Ramage, USS Carney and USS Roosevelt, will shift to the eastern Mediterranean.

“We have also taken steps to augment U.S. Air Force F-35, F-15, F-16, and A-10 fighter aircraft squadrons in the region. The U.S. maintains ready forces globally to further reinforce this deterrence posture if required,” Austin wrote in a Sunday evening statement.

“In addition, the United States government will be rapidly providing the Israel Defense Forces with additional equipment and resources, including munitions. The first security assistance will begin moving today and arriving in the coming days.”

— Amanda Macias

Germany and Austria announced Monday they would be suspending bilateral aid worth tens of millions of euros to Palestinians following the attack by the Islamist Hamas group, Reuters reported.

The countries reportedly want to prevent the funds from falling into the wrong hands.

Germany and Austria both said they would review how they engage with Palestinian territories, while European Union foreign ministers will hold an emergency meeting Tuesday, which will include aid discussions.

— Hannah Ward-Glenton

Nvidia, the world’s largest AI chipmaker, canceled its upcoming AI Summit in Tel Aviv due to safety concerns.

The in-person event was scheduled for Oct. 15 and 16, with a keynote by CEO Jensen Huang. About 2,500 developers, researchers and tech leaders were set to attend, Nvidia confirmed to CNBC, and the conference was to feature more than 60 sessions on topics like generative AI, autonomous vehicles and supercomputing.

In a blog post leading up to the event, Nvidia highlighted Israel’s more than 6,000 startups and amount of VC investments per capita, making it “one of the world’s most vibrant technology hubs.”

— Hayden Field

Photos show the impact of Israeli airstrikes as they continue to pound neighborhoods in Gaza after Hamas launched surprise attacks into Israel.

Ukrainian President Volodymyr Zelenskyy slammed the attacks in Israel on X, formerly known as Twitter, saying that “terror has opened far too many fronts against humanity.”

“The war against Ukraine. The war in the Middle East.Terrible destabilizations throughout Africa. Constant attempts to cause a crisis on the global food market,” Zelenskyy said.

“Being strong under such circumstances is to confront terror. Being a large country is not enough. Being a wealthy country is not enough,” wrote Zelenskyy, whose country has been fighting off a full-scale Russian invasion for nearly 600 days.

“Being strong means helping to protect people and life against any form of terror. Helping. That is the way,” he added. Zelenskyy spoke to Israeli Prime Minister Benjamin Netanyahu on Sunday.

— Amanda Macias

Sen. Markwayne Mullin, R-Okla., said Congress’ decision to oust former House Speaker Kevin McCarthy, R-Calif., lacked foresight in light of the attacks by Hamas on Israel over the weekend, and called the deciding vote by eight Republicans and 208 Democrats “poor timing on their part.”

“We need a unified Congress to make sure we’re addressing the threats around the world, which we see with Hamas, that’s backed by Iran,” Mullin told CNBC’s “Squawk Box.” “And this isn’t a time for in-house fighting, this is a time for unity.”

Mullin said that Rep. Jim Jordan, R-Ohio, the former chair of the House Freedom Caucus who is backed by former President Donald Trump, probably has the best chance at replacing McCarthy.

He added that he hopes the issue will be resolved by Wednesday “and we can really start focusing on the threats around us.”

—Chelsey Cox

Nine U.S. citizens have been killed in the conflict in Israel over the weekend, State Department spokesperson Matthew Miller told CNN This Morning on Monday.

Secretary of State Antony Blinken on Sunday said the U.S. was working to confirm reports of multiple Americans missing or killed following the multi-pronged attack of Palestine militant group Hamas against Israel.

— Emma Kinery

Israel is “going to change the Middle East” in its response to the weekend hostilities initiated by Palestinian militant group Hamas, Israeli Prime Minister Benjamin Netanyahu said on Monday.

“What Hamas will go through will be difficult and terrible,” he told the heads of authorities in the south of the country, according to a Google-translated update from his office.

“The state will turn over every stone to help you all,” he added.

At least 1,260 people have been killed in the conflict, including 700 Israelis and 560 Palestinians, latest figures show.

As part of its retaliatory measures against a multi-pronged attack from Hamas, Israeli ministers on Monday declared a “complete siege” of the Gaza Strip, disrupting supplies of food, water and electricity to its 2 million residents.

— Ruxandra Iordache

William Wechsler, senior director of the Rafik Hariri Center and Middle East Programs at the Atlantic Council, discusses the geopolitical ramifications of the deadly clash between Israel and Hamas.

— Matt Clinch

Israel’s minister of energy and infrastructure on Monday ordered the immediate cut off of water supplies from Israel to the Gaza Strip.

“What was will not be,” Israel Katz said on X, previously known as Twitter, according to a Google translation. He noted that electricity and fuel deliveries from Israel to Gaza were disrupted on Sunday, following the unexpected attack on Israel by Palestinian militant group Hamas on Saturday.

Israeli Defense Minister Yoav Gallant separately ordered a “complete siege” of the Gaza Strip, interrupting supplies of electricity, food and fuel from Israel to the region.

— Ruxandra Iordache

Air raid alerts sounded in Tel Aviv, Jerusalem and other areas in Israel Monday afternoon after Hamas announced on social media that it had launched rockets at both cities. Jerusalem residents reported hearing air defense interceptions over the city.

Israel’s Magen David Adom ambulance service said it is checking for casualties in the areas where impacts were reported, but that none have been found so far.

— Natasha Turak

Israeli Defense Minister Yoav Gallant ordered a “complete siege” of the Gaza Strip, pledging to entirely cut off the already-blockaded territory of roughly 2 million people after a massive surprise attack by Palestinian militant group Hamas killed more than 700 people in Israel.

“I have ordered a complete siege on the Gaza Strip. There will be no electricity, no food, no fuel, everything is closed,” Gallant said. “We are fighting human animals and we are acting accordingly.”

Hamas governs the Gaza Strip, which is one of the most densely populated territories on Earth and has been kept under an Israeli land, air and sea blockade since 2007.

Human rights groups and United Nations officials have called Gaza “the world’s largest open-air prison,” as those living inside it cannot leave, have limited access to the outside world, and are frequently cut off from electricity and internet.

Israel says the blockade is necessary to protect its citizens from Hamas, which has controlled the Gaza Strip since 2007. The United Nations classifies Israel as an occupier state over the Palestinian territories, whose occupations and annexations following the 1967 Six-Day War remain in violation of international law.

— Natasha Turak

The European Union’s chief diplomat Josep Borrell on Monday said he is convening an emergency meeting of EU foreign ministers on Tuesday to “address the situation in #Israel and in the region.”

He made the announcement on the X social media platform, formerly known as Twitter.

Borrell is currently in Muscat, Oman, to co-chair the 27th meeting of the EU-Gulf Cooperation Council and “reaffirm the EU’s strong commitment to a strategic partnership with the Gulf,” according to an EU statement.

In a Sunday statement on behalf of the EU, Borrell expressed solidarity with Israel and condemned the surprise attacks carried out against it on Saturday by Palestinian militant group Hamas.

“The EU calls for an immediate cessation of these senseless attacks and violence, which will only further increase tensions on the ground and seriously undermine Palestinian people’s aspirations for peace,” he said at the time.

— Ruxandra Iordache

Fighting has stopped between Israeli troops and Hamas fighters inside Israel as Israeli Defense Forces have regained control of the areas outside Gaza, IDF spokesman Rear Admiral Daniel Hagari told press.

The announcement follows more than 48 hours of fighting following a surprise attack from Palestinian militant group Hamas early Saturday morning. The attack, carried out with the help of thousands of rockets and gunmen, is the largest Israel has seen in 50 years and resulted in more than 700 Israeli deaths.

Israel carried out multiple airstrikes on buildings in Gaza overnight in response, with retaliatory attacks and destruction inside the densely-populated and blockaded territory expected to continue.

— Natasha Turak

At least 260 bodies have been found at the site of a music festival in southern Israel attacked by Hamas militants on Saturday, the Israeli rescue service Zaka reported.

Hundreds of people, including many foreign visitors, attended the Supernova Festival, an all-night dance party event held in a rural farmland area near the Gaza-Israel border. The festival was meant to celebrate the Jewish holiday of Sukkot. 

Witnesses to the Saturday morning attacks described hearing rockets and sirens as dawn broke. Videos posted to social media show scores of attendees running across an open field as gunfire can be heard. Israel says more than 100 people have been taken hostage by Hamas, many of whom were at the festival and several of whom are foreign nationals. Israel’s government says that rescue operations are underway.

— Natasha Turak

The current conflict between Israel and Palestinian militant group Hamas represents a “very great danger for the region,” Kremlin spokesperson Dmitry Peskov said Monday.

Russia is closely monitoring the “dangerously expanding” situation in Israel, Peskov added in Google-translated comments posted by Russian state news agency Tass on Telegram. The spokesperson said that Russian President Vladimir Putin’s schedule does not currently include engagements with the leadership of Israel or Palestinian territories, but that such outreach can be “promptly” agreed.

Russia’s foreign minister Sergey Lavrov will on Monday hold talks with the League of the Arab States over Palestine, the foreign ministry said on Sunday.

Moscow has previously called for a ceasefire in hostilities sparked by a surprise attack by Hamas on Saturday, and laid fault for the conflict at the feet of Western nations:

“We regard the current large-scale escalation as another extremely dangerous manifestation of a vicious circle of violence resulting from chronic failure to comply with the corresponding resolutions of the UN and the Security Council and the blocking by the West of the work of the Middle East Quartet of international mediators made up of Russia, the United States, the EU and the UN,” Russian foreign ministry spokesperson Maria Zakharova said, in comments carried Saturday on the Russian foreign ministry’s Telegram account.

The comments come as the Kremlin continues its full-scale invasion in Ukraine, throughout which it has repeatedly criticized Western involvement.

— Ruxandra Iordache

Iran called for an emergency meeting of the Organization of Islamic Cooperation over recent hostilities between Israel and Palestinian militant group Hamas, the Iranian foreign ministry spokesperson said Monday.

“In the recent contact of the Foreign Minister of our country with some of our counterparts, including the Iraqi Foreign Minister, we suggested that an extraordinary meeting of the Organization of Islamic Cooperation be held and we emphasized that the Palestinian issue is still the first issue of the Islamic world,” Nasser Kanaani said, in Google-translated comments carried by Iran’s state-run Islamic Republic News Agency.

Historically a supporter of Hamas, Iran has congratulated the militant group on its surprise Saturday offensive against Israel but denied involvement in the initiative.

“We have not yet seen evidence that Iran directed or was behind this particular attack, but there is certainly a long relationship,” U.S. Secretary of State Antony Blinken said Sunday on CNN’s “State of the Union.”

— Ruxandra Iordache

The surprise attack by Hamas on Israel suggests a massive intelligence failure as the Israeli government appeared blindsided by the infiltration of Hamas fighters across the southern border and the launch of thousands of rockets.

The Hamas assault by air, land and sea also raised questions as to why U.S. intelligence agencies apparently did not see it coming, experts and former intelligence officials said. 

U.S. officials said that if the Israelis knew an attack was imminent, they did not share it with Washington.

“We were not tracking this,” one senior U.S. military official told NBC News. 

Read the full story here.

— NBC News

Israel’s counteroffensive against the Palestinian Hamas militant group will likely stretch for months — even years. That’s especially so if suspicions that Iran was involved in the militants’ ambush on Israel turn out to be true.

“Jews have not faced this kind of atrocity in the world since the Holocaust, so … everything is on the table if you are an Israeli Jew today,” Ian Bremmer, president and founder of political consultancy Eurasia Group told CNBC.

“To take out the leadership of Hamas, it is not going to be a matter of days or weeks. This is months or maybe years. This is going to go on for a long, long time,” he added.

The weekend assaults happened a day after the 50th anniversary of the Yom Kippur War, inviting comparisons with the deadliest Arab-Israeli war in 1973 that threatened to imperil the state of Israel.

For more, please read the full story.

— Clement Tan

Israel’s central bank on Monday announced it will sell up to $30 billion in foreign reserves to support its currency which has fallen sharply following the deadly incursion by Hamas militants over the weekend.

“The Bank will operate in the market during the coming period in order to moderate volatility in the shekel exchange rate and to provide the necessary liquidity for the continued proper functioning of the markets,” the Bank of Israel said in a statement.

The Israeli shekel last weakened 1.63% to trade at 3.90 against the greenback — its weakest in seven years.

—Lee Ying Shan

China called for a ceasefire in the Israel-Hamas conflict — and for “establishing an independent State of Palestine,” according to a Ministry of Foreign Affairs statement Sunday.

“The fundamental way out of the conflict lies in implementing the two-state solution and establishing an independent State of Palestine,” the Chinese foreign ministry said.

Its online statement described the situation as an “escalation of tensions and violence between Palestine and Israel.”

It did not mention the Palestinian militant group Hamas, which controls the Gaza Strip and has been designated a terrorist group by the U.S. and the European Union.

— Evelyn Cheng

Jonathan Conricus, spokesperson for the Israel Defense Forces (IDF), said Saturday’s surprise attack by Hamas on Israel marked “by far the worst day in Israeli history.”

Speaking in a video on X, formerly known as Twitter, Conricus said: “If you are Americans, and want to compare this to something in American history, then this could be a 9/11 and a Pearl Harbor wrapped into one.”

He said the Israeli military had amassed around 100,000 reserve troops in the south of the country.

“Our job is to make sure that at the end of this war, Hamas will no longer have any military capabilities to threaten Israeli civilians with,” he said.

“In addition to that, we are also to make sure that Hamas will not be able to govern the Gaza Strip.”

Israel withdrew from the Gaza Strip — a small strip of land between Israel and Egypt — in 2005 and Hamas took control of the area in 2007. Currently, more than 2 million Palestinians live in Gaza.

— Katrina Bishop

The Israel Defense Forces said it struck more than 500 enemy targets in an overnight attack on Gaza following a surprise offensive by Palestinian militant group Hamas early Saturday.

The targets included seven command centers used by Hamas, the IDF said in a Google-translated update on Monday.

“The IDF will continue to attack with force in the Gaza Strip and deal lethal damage to the terrorist organizations,” the force said.

Israel has pledged war and is carrying out a spate of retaliatory attacks following the Hamas attack of Saturday, which left more than 1,100 dead across Israel and the Gaza Strip.

Thailand’s government confirmed that 12 of its citizens were killed in the violence that engulfed southern Israel over the weekend as the Palestinian terrorist organization Hamas launched a surprise attack of unprecedented scale on the country.

Eleven Thai citizens were also kidnapped as Hamas took an unknown number of hostages from the area, the Thai foreign ministry said. The total number of hostages is more than 100, Israeli officials say.

Eight Thais were also injured since the fighting began. More than 1,000 Thai workers in Israel have asked to be evacuated. Some 30,000 Thai nationals work in Israel, the foreign ministry said.

Thai Prime Minister Srettha Thavisin said that the Royal Thai Air Force is on standby to evacuate its citizens from Israel.

— Natasha Turak

A spokesman for the Israeli Defense Forces said that Israeli troops were still battling with Hamas on the ground but have so far not progressed at the expected pace, more than 48 hours after the initial attack by the Palestinian terrorist group.

“We are still fighting. Seven to eight open places around Gaza where we still have warriors fighting terrorists,” IDF spokesman Lt. Col. Richard Hecht said. “It is taking us more time than we expected … We thought this morning we would be in a better place.”

He added that Hamas fighters may still be entering Israel from Gaza, and said that Hamas did not “knock the roof” before attacking civilian areas, which is the term for what Israel says is its warning to civilians before it bombs a building.

“When they came in and threw grenades at our ambulances they did not knock on the roof,” Hecht said. “This is war. The scale is different.”

— Natasha Turak

Oil prices jumped 4% as the Israel-Hamas conflict extended into its third day following a surprise attack on Israel by Palestinian militant group Hamas.

Global benchmark Brent traded 4.53% higher at $88.33 a barrel Monday, while the U.S. West Texas Intermediate futures rose 4.69% to $86.63 per barrel.

At dawn on Saturday during a major Jewish holiday, Palestinian militant group Hamas launched a multi-pronged infiltration into Israel — by land, sea and air using paragliders. The attack came hours after thousands of rockets were sent from Gaza into Israel.

Read the full story here.

— Lee Ying Shan

More than 1,100 people have been killed since the