Oil prices spike after Saudi Arabia launches airstrikes in Yemen
Oil prices spiked early on Thursday after Saudi Arabia launched air strikes in Yemen overnight in an effort to defeat rebel Houthi fighters from the north of the country.
Brent Crude
$88.02
06:28 25/04/24
The attempted Yemeni coup d'etat prompted Saudi Arabia to begin air strikes with countries from the Middle East to Pakistan said to be prepared to commit troops for a ground assault.
The US was said to be providing “logistical and intelligence support” to the Saudi-led forces attacking the rebels.
Predictably, oil prices spiked as a widening Yemen conflict could pose risks for global oil supplies.
At 0740 GMT, the price of Nymex crude rose 5.8% to $51.71 per barrel. The price of Brent crude oil, the international benchmark, jumped 5.1% higher to $59.26 a barrel.
"The fact that OPEC's largest oil producer is involved in a conflict [was] always going to have a significant bearing on oil prices," said Stan Shamu at IG Markets.
Gulf stocks slid on concerns that the fighting could worsen into a broader regional conflict. The Saudi Arabian Tadawul index slumped 5% while Dubai's stock market is off 4.5% and the Qatari index is down 2%.