Oil prices surged following airstrikes by Britain and the US on Houthi rebels in Yemen, a response to assaults on Red Sea shipping routes that have impacted global trade.
In early market activity, Brent crude’s price increased by 2.2% to over $79 per barrel, while the US’s West Texas Intermediate saw a 2.3% rise, approaching $74.
British Chancellor Rishi Sunak confirmed the UK’s involvement in the joint operations with the US, describing them as “targeted strikes against military facilities.” He emphasized that these actions were “limited, necessary, and proportionate” and were undertaken in self-defence.
US President Joe Biden announced that American military forces, with support from the UK and assistance from Australia, Bahrain, Canada, and the Netherlands, effectively carried out strikes on several targets in Yemen.
This military action comes in the wake of the Houthis’ most significant attack yet on Red Sea shipping, which occurred earlier in the week, despite the presence of a US-led naval force in the area.
