- Oil prices climb $2 after US airstrikes in Yemen
- WTI is heading for a modest weekly gain, up about 40c from the start of the week
- Bloomberg noted that WTI prices at the Magellan East Houston terminal are trading higher, to a $1.50/Bbl premium to Cushing, on concerns that freezing temperatures could lead to power outages and supply disruptions
- US and Britain launch airstrikes on Yemen in response to shipping attacks (Reuters)
- Dozens of air strikes occurred last night in retaliation to attacks on shipping vessels by the Houthi rebels operating in Yemen
- President Biden said, "These targeted strikes are a clear message that the United States and our partners will not tolerate attacks on our personnel or allow hostile actors to imperil freedom of navigation,"
- The US said the strikes were intended to damage the ability of the Houthis to launch attacks against vessels in the Red Sea
- Oil prices climbed on fears of a wider escalation or the further involvement of Iran
- Major oil tanker owner halts Red Sea voyages (BBG)
- Following the US airstrikes, Danish shipping firm Torm has stopped allowing its vessels to travel through the Red Sea, citing further risks to the waterway
- The number of oil tankers diverted from the Red Sea has so far remained relatively small compared to container ship reroutes, with Trafigura estimating that 15-20% of the usual tanker traffic has been rerouted
- A long-term closure of shipping in the Red Sea could lead to demand for oil tankers rising by 12%, due to longer shipping times
