Oil prices may rise due to market panic and uncertainty following Hamas’ surprise attacks on Israel.

The conflict threatens higher oil prices, inflation, and growth. Energy trader Pierre Andurand predicts that global oil stockpiles are low, and Saudi and Russian production cuts will lead to more inventories draws.

Brent crude is at $88, up almost 3% since the attacks.

The U.S. Energy Information Administration’s short-term energy outlook for September showed Saudi Arabia’s extended production cut averaged $93 per barrel in the fourth quarter, with price declines starting next year as inventories build.

Helima Croft, RBC Capital Markets chief commodities strategist, believes Iran remains a “very big wild card” as Israel will intensify its shadow war against Iran.

Social Capital CEO Chamath Palihapitiya warns of a fear trade, with the potential for a catastrophic outcome.