Oil Prices Surge Following US-UK Strikes in Yemen

Houthi Attacks on Red Sea Shipping Prompt Global Trade Disruption

Oil prices have risen by 4% following US and UK strikes in Yemen in response to Houthi rebels' attacks on ships in the Red Sea.
Houthi rebels have increased attacks on commercial vessels since the start of the Israel-Hamas war in October, causing major disruption to a vital trade route.
Due to the attacks, many companies are diverting their vessels around the Cape of Good Hope, adding at least 10 days of travel and increasing shipping costs.
About a quarter of the world's shipping containers are being diverted, and 15% of global seaborne trade passes through the Red Sea.
Despite the disruption, oil prices have remained relatively stable, but the situation could impact global supply and inflation if it continues.