Oil prices rose sharply in early trade on Monday after Yemen’s Houthi group attacked Israel over the weekend, pointing to a broader scope for the war in the Middle East.
Continued hostilities between the U.S., Israel, and Iran also pointed to little de-escalation in the war, with Tehran stating that it was prepared for U.S. ground troops.
Brent oil futures jumped 2.2% to $115.08 a barrel by 19:05 ET (23:05 GMT). It had initially surged as high as $116.43 a barrel.
The Yemen-based, Iran-backed Houthis said on Sunday that they had launched a barrage of missiles against Israel, and vowed to launch more attacks. Their joining the war sparked concerns over a potential escalation in the conflict, given that the group has the capability to attack ships passing through the Red Sea.
Israeli forces said they were attacking targets across Iran’s capital over the weekend, while the U.S. said that it had deployed 3,500 troops in the Middle East aboard the USS Tripoli warship.
Oil was sitting on stellar gains in March, with Brent up nearly 60% as the onset of the U.S.-Israel war on Iran greatly disrupted global supplies. Iran effectively blocked the Strait of Hormuz, a key shipping lane that supplies 20% of the world’s oil consumption.
Pakistan said it was prepared to host talks between the U.S. and Iran after Washington proposed a ceasefire and called for negotiations.
source https://www.investing.com/news/commodities-news/oil-prices-surge-to-over-115barrel-after-yemens-houthis-attack-israel-4586638
