On Monday, oil prices experienced an upward trend following statements made by President Donald Trump regarding Iran's involvement in recent attacks by the Houthis, a militant group based in Yemen. These attacks have included missile strikes targeting commercial shipping operations in the Red Sea and even Israel. As a result, U.S. crude oil futures rose by 40 cents, or 0.6%, settling at $67.58 per barrel. Meanwhile, the global benchmark Brent crude saw an increase of 44 cents, or 0.62%, reaching $71.02 per barrel.
In a post shared on the social media platform Truth Social, President Trump made it clear that any future attacks by the Houthis would be regarded as actions taken under the auspices of Iran. He stated, “Every shot fired by the Houthis will be looked upon, from this point forward, as being a shot fired from the weapons and leadership of IRAN. IRAN will be held responsible, and suffer the consequences, and those consequences will be dire!” This declaration came after the U.S. executed a fresh round of airstrikes against the Houthis over the weekend.
Defense Secretary Pete Hegseth emphasized that the U.S. military campaign against the Houthis would persist until the group ceases its aggressive actions. He stated on Fox News' Sunday Morning Futures, “This campaign is about freedom of navigation and restoring deterrence.” Hegseth further clarified that the military actions would continue unabated until the Houthis agree to halt their attacks on shipping and drones.
The Houthis have intensified their targeting of commercial shipping in the Red Sea since late 2023, particularly in response to Hamas's surprise attack on southern Israel. This escalation has resulted in significant disruptions, as international shipping companies have been forced to reroute container ships that would typically navigate through the Red Sea and the Suez Canal.
In response to the escalating situation, President Trump has reinstated a maximum pressure campaign aimed at crippling Iran’s economy by diminishing its oil exports. Treasury Secretary Scott Bessent indicated that the administration's objective is to bring about a collapse of the Iranian economy. The White House maintains that Iran is pursuing nuclear capabilities, a claim that the Islamic Republic has consistently denied.
Mike Waltz, Trump's national security advisor, reiterated on ABC's This Week that all options remain on the table to prevent Iran from acquiring a nuclear weapon. He warned, “We cannot have a situation that would result in an arms race across the Middle East in terms of nuclear proliferation.” The ongoing tensions and military actions underscore the fragile state of international relations in the region and their potential impact on global oil markets.
