Oil prices have risen due to Houthi rebels’ attacks on ships in the Red Sea. Brent crude oil prices rose 23 cents to $79.46 a barrel on Wednesday. West Texas Inter-Intermediate Crude Oil is selling at $74.24 per barrel, up 30 cents. This information has emerged in the report of the news agency Reuters.
According to reports, Houthi rebels attacked two cargo ships in the Red Sea in the wake of the Hamas-Israel war. These prices have increased due to disruption of the oil transport supply chain.
Ships are being diverted via other routes away from the Red Sea. The price of the northern benchmark oil rose more than 1 percent on Monday (Dec 18), raising concerns about supply in the market.
Oil company BP said that its transportation operations through the Red Sea have been temporarily suspended.
Meanwhile, the US defense minister said that an alliance has been formed with 10 countries, including the UK, Canada and France, to prevent Houthi rebels from attacking commercial ships.
In addition, Iran’s oil minister, Javad Wazi, said that the country’s oil sales were halted after a cyber attack on Iran’s petrol station.
Earlier, four of the world’s five largest container ships have stopped plying in the Red Sea since December 15. Ships coming from the Suez Canal have to follow this route. The situation arose after Yemen’s Iran-backed Houthi rebels attacked ships in the Red Sea.
Due to this ongoing situation, the Israel-Hamas war may take a new turn and the world economy may also be affected, experts believe.