U.S. and Britain crack down on Houthis Oil prices soared as the conflict intensified

The United States and the United Kingdom launched airstrikes against Yemen’s Houthi rebels, and oil prices rose sharply today. The main danger for oil prices is that if Iran were to be drawn directly into the conflict, this could threaten production and flows in the Middle East, which accounts for about one-third of world production. Warren Patterson, head of commodity strategy at ING Groep NV, said: "The increased likelihood of disruptions and the need for vessels to divert will give price upside. The bigger risk is that if this spreads, the outflow of goods from the Persian Gulf will be threatened. While this risk is low, the impact can be significant. Vandana Hari, founder of consultancy Vanda Insights, said: "Price Fluctuation is definitely here to stay, with both bearish fundamentals and support for Middle East risk premiums. As it stands, both are expected to continue to function in the coming months. ”