Oil Prices Surge as Mideast Conflict Escalates
Oil prices surged to their highest level in six weeks on Tuesday after Houthi rebels in Yemen attacked Saudi energy facilities, sparking supply worries and a prolonged Middle East conflict.
The Brent crude futures rose by $0.70, or 0.7%, to $97.70 a barrel at 10:56 a.m. EDT (1456 GMT), while U.S. West Texas Intermediate (WTI) crude increased by $1.21, or 1.3%, to $92.69.
The attacks on Saudi Arabia's energy facilities are among the largest carried out against the nation and threaten to worsen the global economic impact of the war by disrupting Middle East energy supplies beyond the Strait of Hormuz.
Tanker flows through the strait remain well below normal, according to Tim Waterer, chief market analyst at KCM Trade, who said that 'the price action reflects both genuine physical tightness and a clear geopolitical risk premium.'