Lates News

With the United States expanding its military strikes against Iranian targets and Iran launching attacks on neighboring Gulf countries, crude oil futures saw double-digit gains this week. Another factor causing heightened concerns is the possibility of Houthi armed forces in Yemen taking action to block shipping in the Red Sea; in the event of the closure of the Strait of Hormuz, Saudi Arabia has been rerouting its crude oil exports through the Red Sea. Barclays analyst Amarpreet Singh stated in a report, "With inventories at their lowest levels in recent years and most strategic oil reserves already released, the escalating situation around the 'red line' in that strait has brought significant upside risks to energy prices. As things stand, we believe that the market is still underestimating the potential impact on inventories."