Oil prices rose Monday after the Trump administration over the weekend escalated strikes on Iran-backed Houthi rebels in Yemen, which caused disruption to key global oil shipping networks.

As of Monday afternoon, the international benchmark Brent crude was priced at $71.02 per barrel, up 0.62%, and the domestic benchmark West Texas Intermediate was priced at $67.56 per barrel, up 0.57%.

Recommended Stories

• Colorado congressman pushes to lift restrictions on public land for drilling
• A closer look at the women leading the conservative climate movement 
• Rundown: The green groups that got the $20 billion in 'gold bars' from the EPA

President Donald Trump on Saturday ordered airstrikes in Yemen’s capital, Sanaa, against Iranian-backed Houthi rebels in response to their recent attacks on merchant ships and U.S. forces in the region. 

The waterways near Yemen include the Suez Canal, the Red Sea, and the Gulf of Aden, which are critical transit routes for transporting oil and liquified natural gas between Asia and Europe. In January, an oil tanker was attacked by Houthi rebels as part of their solidarity with Palestinians in the Israel-Hamas war.

Trump said on Truth Social that the Houthis have waged an “unrelenting campaign of piracy, violence, and terrorism against American, and other, ships, aircraft, and drones.” He added that the U.S.-flagged commercial ships have been unable to safely sail through the Red Sea or the Gulf of Aden for over a year.

In his post, Trump called on Iran to end its support for the Houthis. Since Trump entered office, the United States imposed two rounds of sanctions to drive Iranian oil exports down as part of a plan to asset “maximum pressure” on the country to end its nuclear program.

“The President made it very clear that he’s going to hold Iran responsible for further attacks,” said Patrick De Haan, an analyst at GasBuddy. “At the same time, Trump has already been very clear that sanctions on Iran are moving forward in a more assertive way, and that probably will prevent Iran from selling more oil into the global market.”

Houthi leader Abdul-Malik al Houthi said Sunday that the group would “confront escalation with escalation.” Houthi attacks paused in January after the ceasefire in the Gaza war, but last week, the group said it would restart attacks against Israel’s ships due to the cutoff of aid into Gaza.

The threat of continuous conflict in the region could lead to additional oil price hikes.

COLORADO CONGRESSMAN PUSHES TO LIFT RESTRICTIONS ON PUBLIC LAND FOR DRILLING

“Iran could make things interesting,” De Haan said. “The Houthis could go after some of the vessels that are transiting. That is certainly a wild card that we could see in the coming weeks, although President Trump promising significant escalations remains to be seen if they’re going to test that theory.” 

Houthi attacks have caused some oil tankers to avoid the Red Sea and instead take a long and costly journey around the Cape of Good Hope. However, De Haan said if the U.S. could eliminate the threat of Houthi rebels, the risk of disruption would be lowered, and shipping vessels could use the waterways near Yemen, which would lower costs and, in turn, lower oil prices in the weeks ahead.