Oil prices skyrocket after attacks in the Red Sea
Oil prices rally: the market fears an escalation of tensions in the Middle East following US and UK airstrikes against Houthi rebels in Yemen, which could lead to disruptions in oil supplies. Brent rose by 3.19% to 79.88 dollars a barrel, approaching the 80 dollar threshold, while WTI futures recorded a rise of 3.37% and changed hands at 74.45 dollars a barrel.
Overnight, the United States and the United Kingdom carried out airstrikes against Houthi rebels in Yemen, who for weeks have been intensifying attacks on shipping in the Red Sea in “solidarity” with the Palestinians of Gaza, a territory devastated by the war between Israel and Hamas. In a joint statement, Washington, London and eight of their allies, including Australia, Canada and Bahrain, underlined that the operation, conducted in a context of high regional tension, is aimed at “de-escalation” and to “restoring stability in the Red Sea”.
Thus, concerns are rising about the potential impact of a broader conflict in the Middle East would have on oil supplies from the region, particularly those moving through the critical Strait of Hormuz.
“If large parts of the flows through the Strait of Hormuz were interrupted, the impact on gas markets would be up to three times greater than that of the oil price shocks of the 1970s and more than double that of the war in Ukraine, impacting already fragile supply chains and inventory levels,” Saul Kavonic, energy analyst at MST Marquee, told Reuters.
#Oil #alarm #price #skyrocketing #attacks #Red #Sea
