The price of Brent crude rose by more than 3% to above $115 (£86.77) a barrel, while US-traded oil climbed to $101.62 after gaining almost 2%. It puts Brent on track for its biggest monthly gain on record, according to the BBC.
The Yemeni Ansar Allah government in Sanaa who have already been involved in disruptions to maritime traffic in the Red Sea in recent years, crossed a new threshold by officially entering the war as part of a broader regional conflict on Sunday.
The escalation of the conflict comes as the Middle East accounts for about a third of global oil production and is home to strategic maritime choke points such as the Strait of Hormuz and the Bab el-Mandeb Strait.
Any credible threat to these infrastructures automatically leads to an immediate reassessment of the geopolitical risk premium factored into the price of a barrel.
The rise in the crude prices also came after Iran escalated its retaliatory attacks on the Zionist regime and US bases and assets in the region.
MNA
TEHRAN, Mar. 30 (MNA) – Global oil prices jumped and stocks fell sharply on Monday in Asia after the Yemeni Sanaa government joined the US-Zionist war against Iran and making Bab el-Mandab Strait the next potential choke point.
News ID 243034
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