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

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Israel and Hamas at war – live updates

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

The Israeli prime minister, Benjamin Netanyahu, said Israel was embarking on a “long and difficult war” against Hamas. The death toll has risen above 1,100 since fighting started on Saturday, and is expected to rise further.

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