Houthi Attacks Tankers, Oil Spurts
Oil prices surged again after the Iran-backed Houthi group claimed to have attacked two Saudi Arabian tankers in the Red Sea. This attack escalated the Middle East conflict and raised concerns about disruptions to global energy supplies.
Brent crude rose 2.6% to near US$96 per barrel after closing at a six-week high. Meanwhile, West Texas Intermediate, or WTI, strengthened to above US$88 per barrel.
The Houthis claimed to have fired missiles and drones at two tankers, the Encelia and the Layla, for allegedly violating the blockade. UK Maritime Trade Operations also reported that a ship was hit by a projectile near Saudi Arabia's Red Sea coast, causing a fire on board.
Ship tracking data showed the Encelia briefly displayed a "not under command" status, indicating the ship may have lost maneuverability due to damage. Meanwhile, the Layla, a large crude oil tanker, continued sailing under its own power.
This attack is a serious escalation as it marks the first attack on an oil tanker in the Red Sea. This route serves as a crucial export route for Saudi Arabia to avoid risks in the Strait of Hormuz, which has also been disrupted by the escalating US-Iran conflict.
Consequently, oil prices have the potential to remain strong as long as the risks in the Red Sea and Hormuz remain unabated. If the Houthi attack triggers further supply chain disruptions, Brent could potentially reach US$100 per barrel. Rising oil prices could also amplify inflation concerns, depress stocks, and cause the market to reconsider the risk of high interest rates. (asd)*
Source: Newsmaker.id
