Oil prices jump nearly 2% after US airstrikes against Houthis
Investing.com-- Oil prices rose sharply in Asian trade on Friday after U.S.-led forces launched airstrikes against the Iran-backed Houthi group in Yemen, ramping up concerns over more disruptions to Middle East supplies.
The U.S. military carried out airstrikes against multiple Houthi-controlled areas of Yemen late-Thursday, media reports said. The strikes came shortly after Iran seized an oil tanker with Iraqi oil in the Gulf of Oman.
Tensions with Iran and the Houthi attacks saw several shipping operators steer clear from the region, which pointed to potential delays in crude shipments through the Suez Canal.
The Israel-Hamas war, which is at the heart of recent instability in the Middle East, also showed no signs of stopping.
Persistent concerns over the Middle East offered some support to oil prices in recent weeks, particularly as markets feared that widespread conflict in the region will disrupt oil supplies in 2024.
Brent oil futures expiring in March jumped 1.9% to $78.85 a barrel, while West Texas Intermediate crude futures rose nearly 2% to $73.50 a barrel by 20:08 ET (01:08 GMT).
Concerns over supply disruptions helped oil prices gain despite a string of negative signals this week, although they were still set for a muted weekly performance.
Data on Thursday showed U.S. consumer price index inflation grew slightly more than expected in December, dampening hopes that the Federal Reserve will begin cutting interest rates early this year.
Before that, U.S. inventory data on Wednesday showed an unexpected increase in crude stockpiles, with gasoline and distillate inventories logging a second week of outsized builds. The reading showed that demand in the world’s largest fuel consumer remained weak, with a severe
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