Oil Prices Surge Over 2% Amid US-Iran Tensions

Oil prices surged over 2% due to increasing tensions between the US and Iran, as well as the announcement by Yemen’s Houthi rebels of a naval blockade against Saudi Arabia. Brent crude oil futures rose by 2.1% to $91.11 per barrel, while US West Texas Intermediate (WTI) futures increased by 2.49% to $85.30 per barrel. According to UBS analyst Giovanni Staunovo, “A decrease in exports through the Strait of Hormuz and possible disruptions to oil supplies through the Red Sea are driving up oil prices.” A tanker reported being hit by an unknown projectile in the Strait of Hormuz, resulting in the crew having to abandon ship. There has been a significant decrease in ship traffic. A limiting factor for the price increase was the announcement by an Iranian official that mediators had proposed a 10-day ceasefire. Meanwhile, Iranian-backed Houthi rebels in Yemen announced a naval blockade against Saudi Arabia, sending a new warning signal for global energy supply and trade.