Free Trial

Prices Spike Higher On US/UK Military Strikes In Yemen


Brent couldn't sustain early moves above $79/bbl, the front end benchmark last near $78.80/bbl, still +1.85% higher for the session. Earlier highs of $79.37/bbl were very close highs from Jan 4. For WTI we were last in the $73.40/bbl region, up by nearly 2%, but also off earlier highs near $74/bbl. Both benchmarks are now close to flat for the week, paring losses in recent sessions.

  • The spike today has reflected joint US/UK joint military strikes in Yemen targeting the Houthis. This is in response to attacks on commercial ships by the Houthis over recent months.
  • The US & UK authorities have stated the strikes aren't designed to escalate tensions, but this will be a focus, particularly around risks of Iran becoming more involved in a broader conflict.
  • Elsewhere, China crude import volumes rose in Dec, with 2023 being a record year for imports as the country emerged from Covid lockdown conditions.
  • This, along with a softer USD sentiment, has likely aided oil at the margins.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.