##  [# Energy Funds Rally in Europe on Israel-Hamas War](/sections/news/energy-funds-rally-europe-israel-hamas-war) 

 

# Energy Funds Rally in Europe on Israel-Hamas War

 

 

Defensive stocks jump as investors turn cautious



 

 

 

 

 [![etf](/sites/default/files/styles/author_image_icon/public/2023-03/etf_com_logo.png?itok=tX9VZitZ "etf")](/contributors/theo-andrew) 

[By Theo Andrew](/contributors/theo-andrew)

 Oct 10, 2023

 Edited by: Mark Nacinovich

 

 

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[Energy](https://www.etf.com/topics/energy) exchange-traded commodities spiked in Europe on Monday after the war between Israel and Hamas led to a surge in [oil](https://www.etf.com/stock/OIL) prices.

The world’s largest oil ETC, the $2.1 billion [WisdomTree Brent Crude Oil ETC](https://www.etfstream.com/etf-screener/BRNT) (BRNT), rose by 3.8% as trading opened on Monday after the oil price jumped above $87 a barrel following Hamas’ surprise attack on Israel on Saturday.

Energy-sector exchange-traded funds also jumped on the news, with [iShares MSCI World Energy Sector UCITS ETF](https://www.etfstream.com/etf-screener/5MVW) (WENS) and the [Xtrackers MSCI USA Energy UCITS ETF](https://www.etfstream.com/etf-screener/XUEN) (XSEN) up 3.3% and 2.8%, respectively.

Elsewhere, the [WisdomTree Energy ETC ](https://www.etfstream.com/etf-screener/AIGE)(AIGE) spiked by 3.4% as concerns the conflict could spread to other parts of the Middle East drove prices higher.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said a long war could bring Iran into the conflict, creating another supply shock within the energy sector.

“This latest jump will fuel inflationary worries, at a time when investors are already jittery about the interest rates potentially staying higher for longer," she said.

## Energy ETFs as "Safe Haven"

Norman Villamin, group chief strategist at Union Bancaire Privée, added the energy sector could act as a “safe haven” for investors as uncertainty in the region increases.

“With energy equities historically cheap on an absolute basis and relative to the broader market, the sector may offer a safe haven amidst the geopolitical uncertainty introduced over the weekend,” he said.

Other defensive sectors have also been performing strongly on the news, with [gold](https://www.etf.com/topics/gold) jumping almost 2% since Friday, boosting gold ETCs such as the $13.4b billion [Invesco Physical Gold ETC](https://www.etfstream.com/etf-screener/SGLD) (SGLD) and the $12.5 billion [iShares Physical Gold ETC](https://www.etfstream.com/etf-screener/IGLN) (SGLN).

 
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 [ Theo Andrew ](/contributors/theo-andrew) 

 

 

  Theo Andrew joined ETF Stream as a senior reporter in September 2021. He has over four years of investment writing experience spanning pensions and…   [View Bio](/contributors/theo-andrew)

 



 

 


 Related Topics  [Energy](http://www.etf.com/topics/energy) 

 [Oil](http://www.etf.com/topics/oil) 

 [Gold](http://www.etf.com/topics/gold) 

 [WisdomTree](http://www.etf.com/topics/wisdomtree)