Oil surges on Middle East tension, fiscal cliff optimism

NEW YORK, Nov. 19 (Xinhua) -- Crude prices surged on Monday as tension between Israel and Hamas escalated and hopes rose that U.S. fiscal cliff can be avoided.

Traders were concerned about the intensified tension in the Middle East. Israel bombed dozens of targets in the Gaza Strip on Monday, while Palestinian rocket fire continued to hit Israeli cities. An Israeli official said the country got prepared for a ground invasion in Gaza but preferred a diplomatic solution.

United Nations Secretary General Ban Ki-moon was due to arrive in Cairo on Monday to support ceasefire efforts led by Egypt. According to reports, a delegation from Israel had also been to Cairo for truce talks.

Optimism for a debt deal in Washington also boosted risk appetite.

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