Houthi Threats Drive Oil Prices to $108 as Yemen Conflict Escalates

The Houthi rebels have threatened to launch more attacks on Saudi cities after a series of strikes on Monday, with oil prices soaring above $100 a barrel as tensions escalate in the region.

A UN emergency meeting heard warnings of a humanitarian crisis in Yemen, where 100,000 people have already been displaced by the fighting. The strait of Bab al-Mandab at the bottom of the Red Sea is seen as key to resolving the conflict, with Qatar warning that a blockade could be catastrophic for world trade.

Saudi Aramco has suspended loadings at its Yanbu terminal, leading to a 3% rise in Brent crude prices to $108 a barrel. The US and Iran are locked in a dispute over control of the strait of Hormuz, through which a fifth of global traded oil passes.