The US and the United Kingdom attacked Houthi positions in Yemen. The market is concerned about an impact in the Strait of Hormuz.
Oil rose more than 1% on Friday as more ships diverted their course from the Red Sea following air and sea attacks by USA and Britain against Houthi targets in Yemen during the night, following raids against shipping by the group backed by Iran.
In the afternoon, crude oil futures Brent They rose 90 cents, or 1.13%, to $78.31 per barrel, after rising more than $3 to surpass the $80 per barrel threshold. The futures of West Texas Intermediate in the United States they gained 88 cents, or 1.15%, to $72.85, after jumping more than $3 at their session peak.
Both benchmarks were on track to close the week lower, since the sharp price cuts by Saudi Arabia, The world’s leading exporter, and the surprising buildup of crude oil stocks in the United States, have fueled supply concerns. The oil companies Stena Bulk, Hafnia and Tom They reported that they had decided to stop all ships heading to the Red Sea.
Attacks in the Middle East worry
The attack added to market concerns about the potential impact a broader conflict would have on middle East on the region’s oil supplies, especially those moving through the critical Strait of Hormuz. The American attacks and British are one of the most dramatic demonstrations to date of the escalation of the war between Israel and Hamas since it broke out in October. Witnesses in Yemen confirmed explosions across the country.
Houthi attacks in Red Sea are complicating international trade on the key route between Europe and Asia, which represents about 15% of world maritime traffic. “Although the lack of Red Sea shipping creates transportation problems for some crude oil supplies, the impact on physical markets is, so far, minimal,” he said. Matt Stephani, president of investment advisory company Cavanal Hill Investment Management.
“If the conflict spread to the other side of the Arabian Peninsula… oil markets could react much more significantly,” he added. Meanwhile, the president of the United States, Joe Bidenstated that the “selective attacks” in Yemen are a clear message that Washington and its partners will not allow “hostile actors to endanger freedom of navigation.”
Source: Ambito
