Jan 12, 2024: Oil prices surged by 4% on Friday as a response to oil tankers altering their routes in the Red Sea. This adjustment came after the United States and Britain conducted air and sea strikes on Houthi targets in Yemen. The strikes were carried out in retaliation for attacks on shipping by the Iran-backed Houthi group. Witnesses in Yemen reported explosions throughout the country.
As a result, Brent crude futures experienced a significant increase of $3.16, equivalent to 4.1%, reaching $80.57 per barrel by 1124 GMT. Simultaneously, U.S. West Texas Intermediate crude futures rose by $3.05, representing a 4.2% gain, reaching $75.07. Both benchmarks were heading for a second consecutive weekly rise, reflecting the market’s concerns about the potential impact of geopolitical tensions on oil supplies in the region.
