The oil prices on Friday experienced a more than 2% increase following the United States and Britain conducting strikes against Houthi military targets in Yemen. This action was a retaliation for the Iran-backed group’s attacks on shipping in the Red Sea since late last year. Brent crude futures rose by $1.81, or 2.3%, reaching $79.22 a barrel, while U.S. West Texas Intermediate crude futures increased by $1.80, or 2.5%, trading at $73.82 at 0154 GMT.
The U.S. and British strikes signify a significant escalation in the Israel-Hamas conflict in the Middle East since it erupted in October. Witnesses in Yemen reported explosions across the country. President Joe Biden stated that these “targeted strikes” send a clear message that the United States and its allies won’t tolerate attacks on personnel or threats to freedom of navigation. Australia, Bahrain, Canada, and the Netherlands expressed support for the operation.
Houthi attacks in the Red Sea have disrupted international commerce on the crucial route between Europe and Asia. Since October, the Houthis have targeted commercial vessels in the Red Sea to show support for the Palestinian militant group Hamas in its conflict against Israel. Shipping giant Maersk announced the diversion of all vessels away from the Red Sea due to the ongoing disruptions.
The U.S.-led attacks closely followed Iran’s seizure of a tanker with Iraqi crude destined for Turkey on Thursday, retaliating for the confiscation of the same vessel and its oil by the United States last year. The White House condemned the seizure. Houthi attacks have primarily concentrated on the Bab al-Mandab Strait to the southwest of the Arabian Peninsula, while Iran’s seizure occurred closer to the Strait of Hormuz between Oman and Iran.
