Oil Prices Surge Above $100 Amid Saudi Supply Concerns

Oil prices strengthened further above $100 a barrel in early Friday trading after Iran-backed Houthis captured Yemen’s Mokha port city, raising the risk of disruption to Saudi oil supplies through the Bab al-Mandab Strait. Brent crude futures rose 1 percent to $108.68 by 00:45 GMT, while US West Texas Intermediate gained 1 percent to $103.45. The Houthis captured Mokha on Thursday, officials and residents said. The city, about 60km north of the narrowest point of the strait, had been controlled by forces aligned with Yemen’s internationally recognised, Saudi-backed government. Red Sea navigation is safe for all shipping companies except Saudi vessels, a statement from the Houthi-run humanitarian operations coordination centre said, reported by Reuters. Saudi Arabia’s permanent representative to the United Nations, ambassador Abdulaziz Alwasil, warned that the Houthi attacks threaten not only the kingdom but also international navigation and trade in the Red Sea and the Bab al-Mandab Strait, the state-run SPA news agency reported. He urged the UN Security Council to take a clear, firm stance on the attacks and fulfil its responsibility to maintain international peace and security. The Houthis launched strikes this week against several civilian and economic facilities in the cities of Abha, Khamis Mushait, Jazan and Najran, injuring 73 civilians.