NEW DELHI: Oil prices in the international market on Monday rose more than 3% on Friday as the US and Britain carried out strikes on Houthi military targets in Yemen.
Brent Crude Price, the benchmark of crude price in international market, was trading at $79.74 a barrel, up by 3.04% or $2.35 while WTI Crude was trading at $74.31 up by 3.18% or $2.29 at 7.25 PM (Indian Standard Time) on January 12, 2024. Both benchmarks were on course for a second straight weekly rise.
The US and the UK attacked the Houthi military in response to attacks by the Iran-backed group on shipping in the Red Sea. The conflict raised concern of broader conflict in the Middle-East that could disrupt oil supply from the region. As per energy analysts, if the Strait of Hormuz impacted, it will present over double the impact of the Ukraine war on oil market. The Houthi attacks in the Red Sea have disrupted international commerce on the key route between Europe and Asia, which accounts for about 15% of the world’s shipping traffic.
The Houthis have attacked commercial vessels in the Red Sea to show support for Palestinian militant group Hamas. Meanwhile, US President Joe Biden said the targeted strikes were a clear message that the US and its partners will not tolerate attacks on its personnel or “allow hostile actors to imperil freedom of navigation”. A Houthi spokesperson said the group will continue to target shipping heading towards Israel. Shipping giant Maersk and others are diverting vessels away from the Red Sea, warning customers of further disruptions.