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Global Oil Prices Increased by 3% After Houthi Attacks

Global Oil Prices Increased by 3% After Houthi Attacks.

Oil Prices Spike After US-UK Strikes on Houthi Targets in Yemen:

Global oil prices jumped by 3% on Friday following US and UK airstrikes on Houthi targets in Yemen.

The strikes, a response to Houthi attacks on shipping in the Red Sea, sparked concerns about potential disruptions to vital oil supplies and heightened tensions in the region.

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Key points:

  • Oil prices surge: Brent crude rose 2.9% to $79.62, while WTI crude climbed 3% to $74.15.
  • US-UK airstrikes: The strikes targeted Houthi positions in response to attacks on commercial vessels in the Red Sea, particularly the Bab al-Mandab Strait.
  • Houthi attacks: Houthi attacks were seen as a show of support for Hamas during its conflict with Israel.
  • Red Sea shipping disruptions: The redirection of oil tankers due to the attacks raised concerns about potential supply chain disruptions.

Rising Tensions in Middle East Fuel Oil Price Spikes and Supply Chain Worries:

The recent escalation of tensions in the Middle East, sparked by Houthi attacks in the Red Sea and US-UK airstrikes in Yemen, is sending shockwaves through the global oil market and raising concerns about a wider regional conflict.

Key points:

  • Oil prices jump: Oil prices surged by 3% on Friday, reflecting anxieties about potential disruptions to supply chains and oil flows.
  • Red Sea disrupted: Houthi attacks have disrupted shipping through the Red Sea, a crucial route for 15% of global traffic.
  • Wider conflict fears: Experts warn that a broader Middle East conflict involving Israel, Hamas, and Iran could severely impact oil supplies from the region, surpassing even the shocks of the 1970s and the Ukraine war.
  • Strait of Hormuz in focus: Fears of potential disruptions to the critical Strait of Hormuz, a key oil chokepoint, further amplify anxieties.
  • Global impact: The situation has wide-ranging economic and geopolitical implications, with fragile supply chains and stock levels already under pressure.
  • Calls for restraint: Saudi Arabia, a major oil exporter, and others urge all parties to avoid escalation and prioritize dialogue.

As developments unfold, the potential impacts on the global economy and geopolitics remain unclear.

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