Escalating Middle East Conflicts Spark Oil Price Increase

Oil prices saw a notable rise on Tuesday, climbing by 1%, as renewed tensions in the Middle East raised concerns over potential supply disruptions. The recent U.S. military actions in Yemen and Israel's extensive strikes on the Gaza Strip have intensified the situation, with the Yemeni militant group Houthis promising to escalate confrontations. This group has previously disrupted the Red Sea shipping route by targeting international cargo vessels.

Market Reaction to Geopolitical Tensions

By 7:16 am ET, West Texas Intermediate for April deliveries had increased by 1.23%, reaching $68.43 per barrel. Similarly, Brent crude for May settlements saw a 1.27% rise at 7:17 am ET, trading at $71.90 per barrel. These movements highlight the market's sensitivity to geopolitical risks and their potential impact on oil supply chains.