Houthi Transit Fees Spark WTI Rally Amid Regional Tensions

West Texas Intermediate (WTI) crude oil prices surged on Wednesday, ending a three-day losing streak, after reports emerged that Yemen's Houthi rebels may introduce transit fees in the Bab el-Mandeb Strait.

The move has raised concerns about energy supplies and has lifted the geopolitical risk premium in oil prices. WTI futures on the New York Mercantile Exchange (NYMEX) jumped 6% to trade above $83.00, according to TradingPedia.

The Bab el-Mandeb Strait is a key shipping route that handles almost 7% of global oil flows. Any introduction of transit fees by the Houthi rebels could disrupt energy exports through this vital shipping lane and trigger fresh military tensions in the region.