Oil Prices Spike on Red Sea Attacks and Kazakhstan Output Cuts
Oil prices are set to rise this week due to attacks on tankers in the Red Sea and Kazakhstan's temporary output cuts. Brent crude is trading at $99.97 a barrel, down slightly but still tracking a strong weekly gain of around 13.5%, while West Texas Intermediate (WTI) futures fell to $91.49 a barrel, on track for a 10.9% weekly rise.
The attacks, carried out by the Iran-aligned Houthi group, have raised concerns about disruption at the Bab el-Mandeb chokepoint, potentially tightening global energy flows. U.S. President Donald Trump vowed to 'hold Iran responsible' for any further attacks.
Kazakhstan's energy ministry announced that oil companies temporarily cut back production after suspected Ukrainian drone attacks forced the country's main Black Sea export terminal to close. The Caspian Pipeline Consortium stopped receiving oil from Kazakhstan, which handles around 2% of global daily crude supply.