Get the scoop on how U.S. airstrikes in Yemen are shaking up oil prices worldwide. Dive into the latest on Brent crude and West Texas Intermediate amid Middle East unrest.
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Here is what is happening: Oil prices increased greatly on Friday.
This happened after the U.S. and some other countries bombed targets in Yemen.
They were trying to stop a group called the Houthis because they were causing problems for ships.
What Happened with the Airstrikes
The U.S., Britain, and other countries like Australia, Canada, and the Netherlands did these airstrikes Thursday night.
They said it was to stop the Houthis from threatening ships in the Red Sea.
This is a really important area for global trade.
President Biden’s Reaction
President Joe Biden from the U.S. said he will do whatever it takes to keep the American people safe and ensure trade worldwide goes smoothly.
This shows that the U.S. is serious about keeping important shipping routes safe.
Oil Prices Go Up
After these airstrikes, the price of oil started to rise.
Brent crude, used to set prices internationally, rose by 3.0% to $79.74 a barrel.
West Texas Intermediate, a big deal for American oil prices, increased by 3.1% to $74.21 a barrel.
Experts’ Thoughts
Some experts from a bank called UBS think Brent crude oil might cost between $80 and $90 per barrel this year.
However, there is much tension in the Middle East, especially because of issues between Israel and a group called Hamas.
Iran, which helps the Houthis and produces much oil, and Saudi Arabia, another big oil producer, are also involved in this.
Issues at the Strait of Hormuz
Another big thing happened when Iran took an oil tanker near the Strait of Hormuz.
This place is super important because about 20% of the world’s oil goes there.
An expert from ING, Warren Patterson, says that there is a small chance of problems in the Persian Gulf right now.
However, he thinks people should watch it because it could affect oil prices and supply.
In Short
So, what is happening is that after the U.S. bombed some targets in Yemen, oil prices have gone up.
It is important to watch what is happening in the Middle East because it can change how much we pay for oil and affect trade worldwide.
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