Oil Prices Rise Amid Middle East Conflict Concerns

As tensions in the Middle East escalate, oil prices have seen a significant increase, with a 1% rise attributed to growing concerns over potential supply disruptions. The recent U.S. strikes in Yemen and Israel's large-scale attacks on the Gaza Strip have heightened fears of a resurgence in regional conflicts, impacting global oil markets.

The Yemeni militant group Houthis has vowed to escalate the confrontation following these attacks, raising alarms over the security of crucial shipping routes. Last year, the Houthis were responsible for disrupting the Red Sea shipping route by targeting international cargo vessels, a situation that could repeat if tensions continue to rise.

Market Reaction

West Texas Intermediate for April deliveries increased by 1.23%, reaching $68.43 per barrel at 7:16 am ET. Similarly, Brent for May settlements saw a 1.27% rise, selling for $71.90 per barrel at 7:17 am ET. These price movements reflect the market's nervousness about the potential for prolonged disruptions in oil supply from the region.