Oil surges 3% as Iran war escalates with Yemen’s Houthis entering the Mideast conflict

Yemen's Houthis said they fired missiles at Israel, opening a new front in the U.S.- and Israeli-led conflict with Iran and prompting oil prices to climb on Monday. The incident adds a near-term geopolitical risk premium to crude, increasing volatility in energy markets and posing downside risk to risk assets sensitive to higher oil prices.

Analysis

Yemen's Houthis said they fired missiles at Israel, opening a new front in the U.S.- and Israeli-led conflict with Iran and prompting oil prices to climb on Monday. The incident adds a near-term geopolitical risk premium to crude, increasing volatility in energy markets and posing downside risk to risk assets sensitive to higher oil prices.