US, UK strikes on Yemen’s Houthis trigger surge in energy, gold prices
Energy and gold prices surged in early Friday trading following a joint US-UK military operation against Yemen’s Houthi
Energy and gold prices experienced a significant surge in early trading Friday following a joint military operation by the U.S. and the U.K. against Yemen’s Houthi rebel group. This escalation comes as a direct response to recent Houthi attacks on commercial shipping in the Red Sea.
The White House confirmed late Thursday that the strikes were carried out by U.S. and British forces, targeting military installations linked to the Houthi rebels. These actions were taken in retaliation to a series of aggressive moves by the Houthis against vital commercial maritime routes.
As a consequence of these developments, Brent crude futures, a global oil benchmark, witnessed a 2.4% increase, climbing $2.10 to reach $79.80 per barrel by 03:30 GMT. This rise in oil prices underscores the growing unease in global markets over potential disruptions to energy supplies.
Similarly, natural gas futures also rose by 2.1%, hitting $3.20 per million British thermal units. Market analysts attribute this increase to growing concerns about the security of energy transit through the Bab al-Mandab Strait, a crucial passage for global energy shipments.
The geopolitical tensions stemming from the Yemen conflict also had a notable impact on gold markets. Spot gold futures saw an increase of 0.45%, or $8.60, elevating the price to $2,037 per ounce. This rise reflects a trend where investors often turn to gold as a safe-haven asset during times of geopolitical instability.
These joint strikes by the U.S. and U.K. are a response to a series of drone and missile attacks by the Iran-backed Yemeni group on international shipping lanes in the Red Sea. These attacks, which began in Nov., are reportedly in retaliation to Israel’s military actions in Gaza.
The Red Sea, a vital corridor for international trade, particularly for the transport of oil and fuel, links the Suez Canal in Egypt with the Gulf of Aden through the Bab el-Mandeb strait. The strategic importance of the Suez Canal lies in its facilitation of quicker and more cost-effective shipping routes between Europe and Asia, bypassing the longer route around Africa’s southern tip.
According to the U.S. military, the Houthis have conducted 27 attacks in the Red Sea since Nov. 19, highlighting the heightened risk to international maritime security in the region.
Source: Newsroom
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