Global oil prices surged after Iran-backed Houthi rebels in Yemen attacked Israel for the first time since the start of the major war. This served as another signal that the conflict in the Middle East is not only not fading but is also drawing in new participants. Reuters reports this, writes UNN.
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The market immediately reacted with a jump in quotes, fearing further expansion of the war and new attacks on critical infrastructure in the region.
Brent crude rose by almost 3% to $115.73 per barrel, continuing its growth after a strong jump at the end of last week. US WTI crude also added more than 3% and reached $102.77 per barrel.
In fact, the market is entering the new week already in panic mode, pricing in the risk of an even greater spread of the war.
Following the Houthi attacks, investors are increasingly concerned that the conflict will extend far beyond Iran and Israel and impact key energy supply routes.
Oil is once again becoming one of the main indicators of global anxiety – and if the situation in the Middle East continues to deteriorate, new price surges may only be a matter of time.