A photo taken during an organized tour by Houthi rebels in Yemen on Nov. 22, 2023, showing the cargo ship Galaxy Leader approaching port in the Red Sea off Yemen's Hodeida province.
– | Afp | Getty Images
Oil prices rose on Tuesday after Iran sent a warship into the Red Sea, as the situation in the key waterway for global supplies remains tense amid ship attacks by Yemen's Houthi rebels.
Global crude oil benchmark Brent rose 1.6% to $78.27 a barrel during Asian trading hours, while U.S. West Texas Intermediate rose 1.42% to $72.67 a barrel during Asian trading hours .
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Oil prices last year
“Any escalation of the conflict in this region will certainly result in a higher risk premium for Brent,” Neil Beveridge, senior energy analyst at Bernstein, told CNBC. However, he pointed out that there would be no major impact yet.
“We have never seen the incursions of the Iranian Navy. And unless there really is an escalation, I don't see any significant impact at this level,” he added.
I would also like to know your general opinion on the oil markets. You know, the whole mismatch between demand and supply, if there are concerns about oversupply, what would that mean for all prices? Because they were fairly stable and largely ignored what could lead to downward pressure and the price of oil.
In retaliation for the country's war in Gaza, which has killed nearly 22,000 people there so far, the Houthi group has attacked ships in the Red Sea, targeting Israeli ships and other vessels heading to or from Israel.
Major shipping companies stopped sailing via the Suez Canal and Red Sea in early December, opting instead to reroute via southern Africa – a longer and more expensive journey with sea freight rates of up to $10,000 per container.
German container shipper Hapag-Lloyd said on Friday it would continue to reroute its ships around the Suez Canal.
However, the launch of Operation Prosperity Guardian, a multinational maritime force, by the US has boosted the confidence of shipping companies. Danish shipping giant Maersk said on Sunday it would resume operations in the Red Sea and the Gulf of Aden.