Oil Prices Surge Over 2% as US and UK Launch Strikes Against Houthi Targets in Yemen

Oil prices experienced a significant spike of over two percent on Friday following joint strikes by the United States and Britain against Houthi military targets in Yemen. The military action was in response to attacks by the Iran-aligned Houthi group on ships in the Red Sea since late last year.

Brent crude futures saw a robust increase of $1.81, or 2.3 percent, reaching $79.22 per barrel, while US West Texas Intermediate crude rose by $1.80, or 2.5 percent, reaching $73.82 by 0154 GMT.

The coordinated strikes by the U.S. and UK signal a noteworthy escalation in the ongoing conflict in the Middle East, particularly amid the Israel-Hamas war that erupted in October. Witnesses in Yemen confirmed explosions across the country.

U.S. President Joe Biden emphasized that the precise strikes convey a clear message that the United States and its allies will not tolerate attacks on individuals and will not allow hostile entities to jeopardize freedom of navigation. The operation received support from Australia, Bahrain, Canada, and the Netherlands.

These military actions unfolded in the aftermath of Iran’s seizure of a tanker carrying Iraqi oil bound for Turkey on Thursday. This move by Iran was reportedly in response to the United States’ seizure of the same tanker’s cargo last year.

The developments in the Middle East underscore the complex geopolitical landscape and its impact on global oil markets. As tensions persist, the energy sector remains sensitive to geopolitical events that can influence oil prices and market dynamics.