Oil prices rise after US and UK attack on Yemeni Houthis

Following the joint attack by the US and the UK, oil prices are rising. The reason is concern over a possible escalation of the conflict and the involvement of Saudi Arabia or the United Arab Emirates (UAE). However, Saudi Arabia has already called for restraint and stressed the importance of maintaining security in the region.

Brent crude is currently trading at around 79 USD/bbl and has gained approximately 2 % during today's trading session following the initial reports of the coordinated US-UK attack.

“The targeted strikes are a clear message that the US, together with its partners, will not tolerate attacks on its people, nor permit hostile behaviour or restrictions on freedom of navigation,” said US President Joe Biden.

According to Reuters, attacks at several locations in Yemen have been confirmed by eyewitnesses. The retaliation follows Tuesday's attack by Yemen's Houthis in the Red Sea, during which a total of 21 drones and missiles were shot down. According to a statement by their spokesperson, the Houthis carried out the attack because US and UK military vessels showed signs of supporting Israel.

“There are concerns that the conflict could escalate further,” Andreas Krieg, a professor in the Department of Security Studies at King's College London, told Reuters. This refers to the possible involvement of Saudi Arabia or the UAE.

However, the Saudis have to some extent calmed the market with their statement, in which they stressed the importance of maintaining the security of navigation in international waters, as well as security throughout the region.