Oil up with rising tension in Red Sea after US and UK strikes on Yemen

By Zeynep Beyza Kilic

Oil prices surged on Friday with rising tension in the Middle East from strikes carried out by the US and the UK on multiple Houthi targets inside Yemen.

The international benchmark crude Brent traded at $79.03 per barrel at 0731 GMT, a 2.09% increase from the closing price of $77.41 a barrel in the previous trading session on Thursday.

The American benchmark, West Texas Intermediate (WTI), traded at the same time at $73.54 per barrel, up 2.11% from Thursday's close of $72.02 per barrel.

Oil prices continue to climb amid the escalation in attacks in the Middle East. Houthis in Yemen have targeted commercial ships in retaliation for Israel's attacks on Gaza since late last year. In response, many shipping companies decided to stop their voyages in the Red Sea, causing concern about trade disruptions.

Late Thursday night, the US and UK carried out strikes on multiple Houthi targets in Yemen in what US President Joe Biden said was "in direct response to unprecedented Houthi attacks against international maritime vessels."

Biden said the Houthi attacks that prompted the allied strikes "have endangered US personnel, civilian mariners and our partners, jeopardized trade and threatened freedom of navigation."

"I will not hesitate to direct further measures to protect our people and the free flow of international commerce as necessary," Biden added.

The Houthis have carried out 27 attacks in the Red Sea since Nov. 19, the US military said earlier Thursday.

While Houthi leader Ali al-Qahoum said early Friday that Yemen had responded to the "American aggression" on American and British warships in the Red Sea, a senior US military official denied these Houthi claims of retaliatory attacks, saying "we have not seen a response from the Houthis at this time."