Oil Prices Continue to Rise Due to Red Sea Attacks

Oil prices rose in early Tuesday trading, continuing the gains achieved in the previous session, as attacks by Houthi forces allied with Iran in Yemen on ships in the Red Sea disrupted maritime trade and forced companies to alter their shipping routes. Brent crude futures increased by 17 cents, or 0.2 percent, to $78.12 per barrel by 0112 GMT. West Texas Intermediate (WTI) futures for the nearest month, which expire on Tuesday, rose by 14 cents to $72.61 per barrel. The second month contract, which is the most active, increased by nine cents, or 0.1 percent, to $72.91. Both benchmarks rose over one percent on Monday amid fears that shipping companies would divert vessels away from the Red Sea. Major oil company BP has temporarily halted all operations across the Red Sea, and tanker group Frontline stated on Monday that its ships will avoid passing through the waterway, indicating that the crisis is expanding to involve energy shipments. Approximately 15 percent of global shipping traffic passes through the Suez Canal, providing the shortest shipping route between Europe and Asia. The attacks on the vessels have prompted the United States and its allies to discuss the formation of a task force to protect Red Sea shipping routes, a move that Tehran, the arch-enemy of the U.S. and Israel, warned would be a mistake.