Oil prices surged over 1% as Red Sea attacks disrupted trade
This surge followed attacks by the Houthi militants on ships in the Red Sea, causing disruptions in maritime trade and compelling numerous companies to reroute vessels.
Brent and WTI futures experienced a robust increase of over 1% on Tuesday, 19 December 2023, reaching their highest levels since December 1. This surge followed attacks by the Houthi militants on ships in the Red Sea, causing disruptions in maritime trade and compelling numerous companies to reroute vessels.
Consequently, oil prices rose more than a dollar a barrel on Tuesday, building on the momentum from the previous session's gains. In response to these incidents, the US initiated a multinational effort to secure Red Sea commerce, amplifying concerns about heightened geopolitical risks in the region.
Brent crude futures rose $1.28/barrel or 1.6% to settle at $79.23/barrel.
WTI crude futures rose 97 cents/barrel or 1.3% to settle at $73.44/barrel.