Investing.com - Investors are keeping a close eye on oil prices as tensions in the Red Sea escalate. The WTI is trading at $74 and Brent at $79.
"In the United States, the possibility of launching a counterattack is beginning to be debated in order to protect vessels sailing through the area. Faced with this scenario, oil accumulates a gain of +3.7% in the weekly calculation ", stand out in March banking.
"Leading companies, such as Maersk (CSE:MAERSKa) Tankers, Moller-Maersk, Hapag-Lloyd (ETR:HLAG) and MSC, joined BP 's (LON:BP) caution, suspending voyages through the Red Sea due to the series of attacks by Houthis and Somali pirates. This move reflects the growing insecurity surrounding this sea route," notes Sergio Avila, an analyst at IG.
"The fear of potential disruptions in crude oil supplies, a consequence of the decision by some companies not to cross the Red Sea to avoid attacks by Yemeni militiamen (the Houthis) was again behind the good performance of the price of this commodity, and this despite the fact that both the US and British navies announced that they would send troops to the area to defend cargo ships from these attacks," warns Link Securities.
"It is important to watch whether the Houthi attacks will escalate as it would translate into increased concerns about a possible rise in tensions in the Middle East, including Iran's involvement in the conflict. Iran has warned that an increased Western military presence in the region would be a mistake," adds the expert.
Translated from Spanish using DeepL.