Oil price leaps and airline shares fall after Hamas attack on Israel

Investors predict more instability in Middle East, as some flights to Tel Aviv are suspended

• Israel and Hamas at war - live updates

Oil and gas prices rose on Monday and airline shares fell amid widespread flight cancellations as markets reacted to the surprise attack on Israel by the militant group Hamas.

Investors appeared to be pricing in the prospect of more instability in the Middle East, given the warning from the Israeli prime minister, Benjamin Netanyahu, that his country was embarking on a long and difficult war". The death toll has passed 1,100 since fighting started on Saturday and is rising.