Oil prices rose sharply on Monday after Yemen’s Houthi group attacked Israel over the weekend, pointing to a broader scope for the war in the Middle East.
Continued hostilities between the U.S., Israel, and Iran also pointed to little de-escalation in the war, with Tehran stating that it was prepared for a U.S. ground invasion as Washington deployed more troops to the Middle East.
Oil prices took few cues from U.S. President Donald Trump offering encouraging comments on negotiations with Iran.
Brent oil futures jumped 2.7% to $115.55 a barrel by 00:43 ET (04:43 GMT), while West Texas Intermediate crude futures rose 1.8% to $101.41 a barrel. Brent had initially surged as high as $116.43 a barrel.
Houthi attacks could open new front in Iran war
The Yemen-based, Iran-backed Houthis said on Sunday that they had launched a barrage of missiles against Israel, and vowed to launch more attacks.
Their joining the war sparked concerns over a potential escalation in the conflict, given that the group has the capability to attack ships passing through the Red Sea.
"The Houthis’ weekend involvement and the arrival of additional US troops underscore the conflict’s widening scope," OCBC analysts said in a note.
"With little prospect of an imminent reopening of the Strait of Hormuz, our baseline remains for Brent to stay around USD100/bbl through mid‐year before gradually easing in 2H26."
Source : Investing.com