Oil prices rise as Iranian warship enters Red Sea after US destroys Houthi boat:
Oil prices rose on Tuesday after Iran sent a warship into the Red Sea,
as the situation remains tense in a waterway crucial to global supplies where ships have been attacked by Houthi rebels from Yemen.
Global benchmark Brent crude rose 2.5% to $78.The U.S.
West Texas Intermediate index rose 2.5% to $73.43 a barrel during Asian trading hours.

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The Iranian warship

Escalation of conflict

Sailing in the Red Sea stopped

The Iranian warship

Iran said on Monday it had sent the destroyer Alborz through the strategic Bab al-Mandeb Strait,
the country’s state media reported, without giving details of the warship’s mission.
the operations to protect shipping lanes were carried out regularly in the Red Sea.
According to an AP report, the move came after the US Navy destroyed
three boats belonging to the Iran-backed Houthi rebels, killing 10 fighters.
U.S. Central Command said in a statement that the Navy responded
to a distress call from the Singapore-flagged Maersk Hangzhou ship, which came under Houthi fire.
In a statement from a rebel spokesman released on Sunday,
the Houthi group said the boats were carrying out “official duties protecting sea routes,” a rebel-owned news channel reported.

Escalation of conflict

Any escalation of conflict in this region will certainly increase the risk premium for Brent crude,”
Neil Beveridge, senior energy analyst at Bernstein, told CNBC.

However, he pointed out that there will be no significant impact for now.

“We have never seen Iranian naval incursions before. And unless the situation gets worse,
I don’t see any significant impact at this level,” he added.

Sailing in the Red Sea stopped

The Houthi group is attacking ships in the Red Sea, targeting Israeli ships
and other vessels heading to or from Israel in retaliation for the country’s war in Gaza,
which has killed nearly 22,000 people there so far.

Major shipping companies stopped sailing via the Suez Canal and the Red Sea in early December,
opting instead to shift via South Africa –
a longer and more expensive journey with freight rates that could be as high as $10,000 per container.

Oil prices rise as Iranian warship enters Red Sea after US destroys Houthi boat

Oil prices rise as Iranian warship enters Red Sea after US destroys Houthi boat

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