U.S. crude futures rise 2% to near $88 per barrel after Houthi rebels target Saudi vessels in the Red Sea.
U.S. crude oil prices extended gains, rising 2% to approximately $88 per barrel after Iran-backed Houthi rebels claimed responsibility for attacks on two Saudi Arabian tankers in the Red Sea. The incident heightens concerns over supply disruptions in a key shipping route amid escalating Middle East tensions.
Prior to the attack, oil prices had stabilized near $86 per barrel following a volatile week driven by geopolitical risks and inventory data. The Red Sea, a critical chokepoint for global oil shipments, has seen increased military activity, raising fears of prolonged supply chain disruptions.
Markets are closely monitoring developments, with traders pricing in potential supply constraints as the conflict shows no immediate signs of de-escalation.