Houthi Attacks Spark Oil Price Spike Amid Escalating Iran-US Tensions
Yemen's Iran-backed Houthi rebels attacked two Saudi oil tankers in the Red Sea, potentially widening the conflict between Iran and the US. The Houthis have threatened to shut down another key trade route, already reeling from Iran's closure of the Strait of Hormuz.
The price of Brent crude oil spiked more than 6% to about $100 a barrel on Thursday, the highest level since May. This is due in part to the escalating tensions between the US and Iran over control of the Strait of Hormuz, which accounts for a fifth of global oil shipments.
US President Donald Trump has threatened 'major military punishment' against the Houthis if their attacks continue. He stated that the US would hold Iran responsible for Houthi actions, as the group is seen as a surrogate and/or proxy of Iran.