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Oil prices experienced a slight increase in early Asian trading on Wednesday, driven by ongoing concerns about shipping disruptions in the Red Sea and escalating tensions in the Middle East.
As of 0004 GMT, Brent crude rose by 26 cents, or 0.4 percent, reaching $76.11 per barrel, while US West Texas Intermediate crude futures increased by 26 cents, or 0.3 percent, reaching $70.64.
The recent uptick in oil prices follows Houthi attacks on ships in the Red Sea over the weekend and reports of an Iranian warship’s arrival on Monday. US helicopters successfully repelled an attack by Houthi forces on a container ship operated by Danish shipping company Maersk in the Red Sea on Sunday. Additionally, Iran’s semi-official Tasnim news agency reported the entry of an Iranian warship into the Red Sea on Monday.
As a response, Maersk and its German competitor Hapag-Lloyd announced the continued avoidance of the Red Sea route by their container ships, which serves as a crucial pathway to the Suez Canal.
The potential escalation of the conflict could lead to the closure of significant waterways for oil transportation, contributing to the volatility in oil prices. Traders are advised to stay informed about geopolitical developments in the region for potential impacts on the energy market.
