Oil Prices Spike on Fears of Wider Mideast Conflict Disrupting Supply
• Oil prices rose 4% as US-led airstrikes on Houthi rebels in Yemen raised fears of a wider regional conflict that could disrupt oil supplies • Strikes were in response to repeated Houthi attacks on commercial shipping in Red Sea • Concerns that oil facilities in Saudi Arabia could get hit in retaliation, like in 2019 when 5% of world supply briefly knocked offline • Oil prices climbed when Iran seized a tanker in Gulf of Oman, but later faded as focus returned to oversupply concerns • Fundamentals like seasonal weakness battling geopolitical tensions near key maritime chokepoints impacting prices day-to-day