Global Crude Oil Prices Jump After U.S. Launches Strikes Against Houthis Targets In Yemen

Topline Global crude oil prices surged early Friday after the U.S. and U.K. launched strikes targeting military infrastructure used by the Houthi rebels in Yemen on Thursday night, raising concerns about a widening conflict in the Middle East that could further disrupt commercial shipping in the Red Sea.

A view from the US and British naval fleet as Yemeni local sources states that US and British ... [+] warplanes have carried out airstrikes on some points in Sana'a, Hodeidah and Taiz cities during the night, at sea. Key Facts The global benchmark Brent crude futures rose more than 2.5% early Friday, before settling at $79.20 per barrel—around 2.3% up from the previous day.

The U.S.’s West Texas Intermediate futures were also up nearly 2.6%, rising to $73.90 per barrel. The spike in prices comes amid persistent concerns about an expanded conflict in the Middle East and continued disruption of crude shipments from the region due to Houthi attacks on commercial shipping along the Red Sea route.

Key Background Late on Thursday, the Pentagon announced the U.S. and U.K. militaries had launched airstrikes against Houthi targets in Yemen, in response to the Iran backed militia’s targeting of ships in the Red Sea. Australia, Bahrain, Canada, and the Netherlands also provided to logistical and intelligence support for the strikes.

President Joe Biden called the strikes a “direct response to unprecedented Houthi attacks…[that] have endangered U.S. personnel, civilian mariners, and our partners, jeopardized trade, and threatened freedom of navigation.” Biden said the U.S. and its partners acted in self defense and “will not hesitate to defend lives and protect the free flow of commerce” in the Red Sea.

The strikes came just hours after Houthi leaders warned attacks by the U.S. or its allies “ won’t go unpunished .” Further Reading U.S. Launches Strikes On Houthi Targets In Yemen (Forbes) Houthi Leader Vows A ‘Big’ Response If U.S. Follows Through On ‘Consequences’ For Shipping Attacks, Report Says (Forbes).