Oil Prices Surge Over 2% Following U.S. and British Strikes on Houthi Targets in Yemen

Oil prices surged by over 2% following a series of reports that the United States and the United Kingdom carried out coordinated strikes on Houthi military targets in Yemen.

Brent crude oil, against which Nigerian oil is priced, increased by $1.81 or 2.3% to settle at $79.22 per barrel while the U.S. West Texas Intermediate crude oil appreciated by $1.80, or 2.5% to close at $73.82 during the Asian trading season.

Witnesses in Yemen reported explosions resonating across the country, saying the gravity of the military actions taken by the Western nations.

He stated that the strikes served as a clear message that hostile actions threatening freedom of navigation would not be tolerated.

Several nations, including Australia, Bahrain, Canada, and the Netherlands, expressed their support for the joint operation.

The Houthi attacks in the Red Sea had significantly disrupted international commerce along a vital route connecting Europe and Asia, responsible for approximately 15% of global shipping traffic.

The Houthi assaults, initiated in October, aimed at commercial vessels in the Red Sea, symbolizing solidarity with the Palestinian militant group Hamas in its ongoing conflict with Israel.

In response to the heightened tensions, shipping giant Maersk announced a diversion of all vessels away from the Red Sea, cautioning clients about potential disruptions in the foreseeable future.

The U.S.-led strikes closely followed Iran’s seizure of a tanker carrying Iraqi crude bound for Turkey.

This action was perceived as retaliation for the U.S. confiscation of the same vessel and its oil the previous year, an incident condemned by the White House.