Oil Prices Surge as US and UK Strike Houthi Targets in Yemen, Stock Market Remains Calm

Riyadh: In response to the recent attacks on ships in the Red Sea by the Houthi group, the United States and Britain have launched strikes from both air and sea against Houthi military targets in Yemen. This development has led to a significant increase in oil prices, while the stock market remains relatively subdued.

Brent futures experienced a 2.0% surge, reaching $79.00 per barrel, while U.S. West Texas Intermediate (WTI) crude rose by 2.1% to $73.55.

Although these strikes have caused an immediate impact on oil prices, experts suggest that it is still too early to determine their long-term effects on the market. As a result, investors are adopting a cautious approach and waiting for further developments before making significant moves.

Khoon Goh, head of Asia research at ANZ in Singapore, stated that "markets are taking a wait-and-see approach for the time being." He also mentioned that if there is a substantial escalation of the situation, traditional safe-haven assets such as U.S. Treasuries and currencies like yen and Swiss franc may experience increased demand due to flight-to-safety tendencies.

As tensions continue to unfold between international forces and Houthi militants in Yemen, global markets will closely monitor any further developments that could potentially impact oil prices and financial stability worldwide.