Crude oil price surges 4% on fears over Middle East conflict

ECB vice-president Luis de Guindos said inflation was expected to stay on its downward trend, but urged caution due to uncertainty over oil price moves 

Smoke rises after the Israeli airstrike in the Gaza Strip. 

Oil prices have surged 4%, recouping some of the steep losses last week, as military clashes between Israel and Hamas ignited fears that a wider conflict could affect oil supply from the Middle East.

The price of Brent crude oil climbed $3.24, or 3.8%, to $87.85 a barrel. West Texas Intermediate crude rose by over 4%. Both benchmarks spiked by more than $4, or over 5%, earlier in the session.