Oil prices surged nearly 3% on Monday following Yemen's Houthi group's announcement of missile attacks on Israel, escalating the Middle East conflict and raising concerns over oil supply disruptions.
Price Movement
- Brent crude futures rose 2.92% to $115.86 per barrel during early Asia trading hours.
- U.S. West Texas Intermediate futures increased 3.20% to $102.80 per barrel.
Houthi Attack Details
- The Houthis stated on Saturday that they launched ballistic missiles at what they described as sensitive Israeli military targets.
- Spokesperson Yahya Saree confirmed the attack via a post on X, citing support for Iran and Hezbollah forces in Lebanon.
- This marks the group's first direct involvement in the U.S.-Israel war against Iran.
Conflict Escalation
- The incident follows U.S. and Israeli airstrikes on Iran that commenced on February 28.
- The Houthi action introduces a new front in the ongoing regional conflict.
Expert Warnings and Market Impact
- Ed Yardeni, president of Yardeni Research, cautioned that global markets are pricing in a scenario of "higher-for-longer" oil prices and interest rates.
- He warned that a prolonged blockade of the Strait of Hormuz could deepen market pullbacks and elevate recession risks.
- Volatility is expected to remain high until oil flows through the critical chokepoint normalize, with uncertainty around potential greater U.S. involvement.