Oil prices rose more than a dollar a barrel on Tuesday, extending the previous session’s gains after attacks by Yemen’s Houthi militants on ships in the Red Sea disrupted maritime trade and forced more companies to re-route vessels.

Brent crude futures rose $1.43, or 1.8%, to $79.38 a barrel by 1645 GMT. US West Texas Intermediate (WTI) crude futures for January delivery, expiring on Tuesday, rose $1.51, or 2.1%, to $73.98 a barrel while the more active February contract gained $1.37 to $74.19.

Read Yemen’s Houthis warn they will target all ships headed to Israel

The US on Tuesday announced creation of a task force to safeguard Red Sea commerce from attacks by Yemeni militants. The Houthis have vowed to defy the US-led naval mission and keep hitting Israeli targets in the region.

On Monday, oil prices rose nearly 2% after a Norwegian-owned vessel was attacked and BP said it had paused all transit through the Red Sea.

Published in The Express Tribune, December 20^th, 2023.

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