US and UK air strikes in Yemen cause crude oil prices to surge
After the United States and the United Kingdom launched air strikes on Houthi armed targets in Yemen, international crude oil prices saw a significant increase. The US and Brent oil prices rose by more than 4% during the day, with the WTI crude oil futures for February delivery reaching $75.25 per barrel at one point.
The air strikes in Yemen sparked concerns about the Palestinian-Israeli conflict and its potential spillover effects. This led to a surge in oil prices, with both WTI and Brent crude oil prices reaching their highest levels since December 27, 2023.
The attack in Yemen resulted in a response from the Houthi armed forces, who called the air strikes illegal and a threat to international peace and security. They declared that the “interests” of the US and UK are now “legitimate targets” and warned of potential consequences for the Middle East.
The escalation of the Palestinian-Israeli conflict and the disruption of shipping routes in the Red Sea have also contributed to the rise in oil prices. Analysts are concerned about the potential impact on oil flows from the Persian Gulf if the conflict spreads further.
Market strategists are warning of the potential for increased volatility in oil prices as the market evaluates the impact of the conflict on OPEC+ production cuts, supply from non-OPEC+ countries, and oil demand prospects.
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