Oil Prices Surge After Houthi Rebels Seize Key Red Sea Port

Oil prices surged to over $100 per barrel on Thursday after Iran-backed Houthi rebels seized control of a key port in the Red Sea. The capture of the strategic Red Sea port intensified Tehran's effort to loosen Washington's grip on the region's key shipping lanes. West Texas Intermediate closed at just below $104 per barrel, while Europe's Brent crude soared more than 6% to about $108.

Murbhan crude out of the United Arab Emirates hiked 5% to nearly $123. The surge in oil prices came as the Iran War heats up, with Tehran manufacturing ballistic missiles to retake at least partial control of another key waterway, the Strait of Hormuz. The Houthis ousted Yemeni government forces from the port city of Mokha, giving the militant army a better position from which to attack ships passing through the Red Sea.

Some analysts believe that the US could benefit from cutting an oil deal with the Trump administration to shore up the Strategic Petroleum Reserve. A new policy memo suggests that the Department of Energy could sell barrels through an emergency drawdown instead of a trade, and simultaneously agree to buy back oil at lower prices. This would yield a profit that could be used to fund physical repairs needed on the reserve's infrastructure.