Biden Expresses Concern Over War’s Impact on Oil Prices

US President Joe Biden expressed concern about the impact of the war in the Middle East on oil prices.

Oil prices rose by 1% as the number of oil tankers diverting their course away from the Red Sea increased, following airstrikes by the United States and Britain on targets in Yemen, in response to attacks by the Houthi group on shipping movements.

Brent crude futures climbed 88 cents, or 1.1%, to $78.29 a barrel at the close.

The oil price reached its highest level this year, surpassing $80 per barrel during the session. The US benchmark, WTI crude oil, rose by 66 cents or 0.9% to $72.68, erasing some of the gains it had made after touching its highest level in 2024 at $75.25.

Analysts and experts in the oil sector have indicated that despite expectations that changing shipping routes would increase shipping costs and extend the time required to transport oil, the supplies have not been affected yet, which has diminished some of the previous gains achieved by prices.

Based on a weekly basis, the price of Brent decreased by 0.5 percent, while West Texas Intermediate experienced a 1.1 percent drop. Oil shipping companies, Stena Bulk, Hafnia, and Trafigura, all stated that they have collectively decided to suspend all ships’ movements towards the Red Sea.

However, Osama Rabie, the Chairman of the Suez Canal Authority, said that the traffic in the canal is proceeding normally in both directions, and that there is no truth to the rumors about navigation being halted due to developments in the Red Sea.

The escalation fueled market concerns about the transformation of the war in Gaza into a broader conflict in the Middle East, which impacts oil supplies. (Agencies)