Oil rises in price as tensions persist in Middle East

Oil rises in price as tensions persist in Middle East

Oil prices are rising on Friday morning, January 12, due to escalating tensions in the Middle East.

According to Ukrinform, this was reported by enkorr.

On the morning of January 12, March futures for Brent rose in price on the London ICE Futures exchange by $1.36 (1.76%) to $78.78 per barrel. A day earlier, Brent rose in price by $0.61 (0.8%) to $77.41 per barrel.

On Friday morning, February futures for WTI rose in price on the New York Mercantile Exchange NYMEX by $1.34 (1.86%) to $73.36 per barrel. During the previous session, the contract rose by $0.65 (0.9%) to $72.02 per barrel.

Tyler Richey, editor of Sevens Report Research, notes that the price of WTI has not fallen below the level of long-term support, which is around $70 per barrel, since the beginning of 2024.

Read also: U.S. tightens restrictions on transactions with Russian oil

"The main reason is the geopolitical uncertainty surrounding the expanding conflict between Israel and Hamas, as well as related attacks by Iranian-backed Houthis on ships in the Red Sea," he added.

Earlier this week, the Houthis launched a large-scale attack on the ships with drones and missiles. The U.S. military repelled the attack, but shipping companies remain wary of sending their vessels through the Red Sea for security reasons. In response, the U.S. and allied military launched a series of strikes against the Houthis in Yemen.

"American and British forces, with support from Australia, Bahrain, Canada, and the Netherlands were involved in the overnight attack, involving at least 60 targets in 16 locations around Yemen," said U.S. President Joe Biden. He called the strikes "These strikes are in direct response to unprecedented Houthi attacks against international maritime vessels in the Red Sea."

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