NRGU - Oil rises as Houthis vow to continue Red Sea attacks despite U.S. U.K. airstrikes
2024-01-12 02:07:06 ET
Crude prices are responding to the U.S. and British airstrikes in Houthi-controlled areas of Yemen, with West Texas Intermediate ( CL1:COM ) climbing 2.4% to $73.71/bbl early Friday. Shipping stocks will also be on watch during the premarket session as tensions escalate around the Red Sea.
"These strikes are in direct response to unprecedented Houthi attacks [that] have endangered U.S. personnel, civilian mariners, and our partners, jeopardized trade, and threatened freedom of navigation," President Biden declared, adding that he would "not hesitate to direct further measures" if necessary.
The Houthis had originally said they would target Israeli-linked ships to show solidarity with Hamas, but that extended to all ships en route to Israel, and then quickly widened to any vessel regardless of its destination.
Reacting to 16 airstrikes that hit radar installations, storage sites and missile launchers, the Houthis pledged to continue targeting ships, saying that "any American attack won't go unpunished and would elicit a "big" response.
Oil-related ETFs: NYSEARCA: USO , NYSEARCA: UCO , NYSEARCA: BNO , NYSEARCA: SCO , NYSEARCA: USL , NYSEARCA: DBO , NASDAQ: USOI , NYSEARCA: NRGU , BATS: OILK , NYSEARCA: USAI , NYSEARCA: UGA
Shipping stocks: A.P. Moller-Maersk ( OTCPK:AMKBY ), Hapag-Lloyd ( OTCPK:HPGLY ) OOCL ( OTCPK:OROVY ) Danaos ( NYSE: DAC ), Global Ship Lease ( NYSE: GSL ), ZIM ( NYSE: ZIM ), Matson ( NYSE: MATX ) and Navios Maritime Partners ( NYSE: NMM ).
More on Red Sea tensions
- Red Sea Turmoil Is Bullish For Maersk And Peers
- BP becomes latest company to halt voyages through Red Sea
- ZIM Integrated Shipping: Prime Beneficiary Of Red Sea Disruptions, Buy
- U.S. warns ships of 'evolving threats' in critical trade route
- Wall Street Lunch: Red Sea Shipping Woes
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Oil rises as Houthis vow to continue Red Sea attacks despite U.S., U.K. airstrikes