Oil Prices Surge Amid U.S. Strikes on Houthis
Oil prices rose on Monday following the U.S. announcement that airstrikes against Yemeni Houthis would continue until their attacks on international shipping cease. The market also reacted to positive economic signals from China, boosting demand expectations.
The strikes, which began on Saturday in response to Houthi assaults in the Red Sea, could last for weeks, according to Washington. The Houthis, in turn, warned of retaliatory measures.
Brent crude futures climbed by 63 cents (0.9%) to $71.21 per barrel, while WTI crude gained 62 cents (0.9%) to $67.80 per barrel.
China’s improving retail sales data further strengthened oil prices, though concerns persist over rising unemployment and slowing industrial production. Analysts note that while geopolitical tensions are fueling the price surge, there are no significant disruptions in supply.
Meanwhile, OPEC+ has decided to increase oil production from April, which may exert downward pressure on prices. However, the potential tightening of U.S. sanctions on Iran could counterbalance this effect.
Reports indicate that U.S. airstrikes in Yemen have resulted in 53 casualties and 98 injuries, according to the Houthis’ health ministry.
