Oil prices surge after Houthi strikes on Israel, hitting decade high
Photo: Brent hits a decade-high amid tensions in the Persian Gulf (Getty Images)
Global oil prices rose again following attacks on Israel by Yemeni Houthis. Brent crude hit a decade-high, according to Reuters.
Brent futures rose by $2.43, or 2.16%, to $115 per barrel, following a 4.2% gain on Friday.
US West Texas Intermediate crude was trading at $101.50 per barrel, up $1.86, or 1.87%, following a 5.5% gain in the previous session.
Analysts attribute this to the sharp escalation of the conflict and Houthi attacks, which have effectively paralyzed traffic through the Strait of Hormuz.
According to them, the market has almost completely ruled out the prospect of a negotiated end to the war, despite US President Donald Trump’s statements about ongoing direct and indirect contacts with Iran, and is preparing for a sharp escalation of hostilities.
Experts note this is a positive signal for oil, given the enormous uncertainty regarding the timing and nature of the outcome.
As a result, Brent crude has risen by 59% this month alone, the sharpest monthly increase, surpassing even the figures from the 1990 Gulf War.
The war, which began on February 28 with US and Israeli strikes on Iran, has spread to the Middle East: on Saturday, March 28, the Iran-backed Houthis in Yemen launched their first attacks on Israel since the start of the conflict, heightening concerns about shipping lanes around the Arabian Peninsula and the Red Sea.
"The conflict is no longer concentrated in the Persian Gulf and around the Strait of Hormuz, but now extends into the Red Sea and the Bab el-Mandeb — one of the world's most crucial chokepoints for crude and refined product flows," Reuters quotes analysts as saying.
Saudi oil exports, rerouted from the Strait of Hormuz to the port of Yanbu on the Red Sea, reached 4.658 million barrels per day last week, according to data from the analytical firm Kpler.
Attacks on Israel
On March 28, Yemeni Houthis launched a missile strike on southern Israel for the first time since the war in Iran began.
With this, the group effectively declared its entry into the conflict, increasing the risk of its further escalation in the Middle East.
On March 25, Iran struck northern Israel with a ballistic missile near the city of Hadera, close to the country’s largest power plant.
The infrastructure was not damaged, but two men sustained shrapnel wounds during a separate attack.
