Oil prices climbed 1% as the United States pledged to continue airstrikes against Yemen’s Houthi rebels. The ongoing conflict has raised concerns about supply disruptions in the Middle East.
“You see the risk increasing with every attack,” an energy analyst stated. Traders are watching developments in the Red Sea closely.
The U.S. has targeted Houthi positions in response to their attacks on shipping vessels. Officials say the strikes will continue until the threat is neutralized.
The Houthis claim they are retaliating against Israel’s military operations in Gaza. Their attacks have disrupted one of the world’s busiest trade routes.
Shipping companies are rerouting vessels to avoid the danger. The longer routes increase transport costs and delay deliveries.
“You cannot ignore the impact on global trade,” a shipping executive said. Many firms are now facing higher insurance premiums.
Brent crude rose 1.2% to $83 per barrel. U.S. West Texas Intermediate (WTI) crude gained 1.1%, reaching $79 per barrel.
Oil markets remain volatile as geopolitical risks grow. Supply concerns are driving prices higher.
Washington has vowed to protect commercial shipping. Officials warn that further Houthi aggression will be met with force.
“The attacks must stop,” a U.S. defense official said. The military is working with allies to secure the Red Sea.
The conflict threatens energy shipments from the Middle East. The region accounts for a significant share of global oil exports.
OPEC has not signaled any immediate production changes. The group is monitoring the situation before making adjustments.
Saudi Arabia and other Gulf producers are watching market movements. Stability remains a priority for oil-exporting nations.
“You want predictability in the energy market,” an OPEC delegate noted. Price swings create uncertainty for both buyers and sellers.
Investors are also weighing demand concerns. Economic uncertainty in major economies has affected consumption forecasts.
China’s slow recovery has limited oil demand growth. Weaker industrial activity has reduced energy use.
The Federal Reserve’s interest rate policy is another factor. Higher rates could slow economic activity and reduce oil consumption.
“You need to balance supply risks with demand realities,” a market strategist stated. Traders are reacting to both geopolitical events and economic data.
Gasoline prices are also being affected. Rising crude costs could push fuel prices higher in the coming weeks.
Consumers may feel the impact at gas stations. Higher transportation costs could also raise inflation.
Global energy markets remain fragile. Further escalation in the Red Sea could drive oil prices even higher.
The U.S. military is maintaining a strong presence in the region. Officials say protecting global trade routes is a top priority.
Oil traders are closely watching diplomatic efforts. Any signs of de-escalation could ease price pressures.
For now, markets remain on edge. The risk of further disruptions keeps oil prices elevated.
