With the United States and Britain striking Houthi military targets in Yemen in retribution for attacks by the Iran-backed group on ships in the Red Sea beginning late last year, oil prices increased by more than 2% on Friday.
U.S. West Texas Intermediate oil futures were up $1.53, or 2.1%, at $73.55 a barrel, while Brent crude futures were up $1.53, or 2%, at $78.94 a barrel. The benchmarks were extending their gains from the previous day by almost 1%, indicating that prices were expected to rise for a second consecutive week.
One of the most striking examples of the Israel-Hamas conflict’s expansion in the Middle East since it broke out in October is the combination of American and British strikes. Explosions have been confirmed by witnesses across Yemen.
About 15% of all shipping traffic worldwide is routed through the Red Sea, where the Houthi strikes have caused significant disruptions to international trade. In an effort to aid the terrorist Palestinian organization Hamas in its conflict with Israel, the Houthis have been attacking commercial ships in the Red Sea since October.
The massive shipping company Maersk informed clients on Thursday that it will be rerouting all of its ships out of the Red Sea for the foreseeable future and warned them of more interruptions.
