Oil Prices Rise After Escalation of Situation in Yemen

Oil prices for Brent crude have increased by 2%, reaching $78.94 per barrel (+$1.54) following the escalation of the situation in Yemen, according to Reuters. Futures for U.S. West Texas Intermediate crude have risen by 2.1%, hitting $73.55 per barrel (+$1.53). The value of base indices has also increased by nearly 1% compared to the previous day.

On Friday night, the United States and the United Kingdom launched strikes targeting Houthi positions in Yemen in response to their attacks on international vessels in the Red Sea. Earlier, U.S. President Joe Biden and U.K. Prime Minister Rishi Sunak announced that U.S. and U.K. armed forces had conducted airstrikes against Houthi positions in Yemen. The attack, according to Biden, was supported by Australia, Bahrain, Canada, and the Netherlands.

By the end of 2023, the shelling of international vessels in the Red Sea has increased in the context of the conflict in the Gaza Strip. The Houthis, backed by Hamas, have been targeting ships linked to Israel.