Iran-Linked Forces' Military Action Drives Up Global Oil Prices

Yemeni Houthi rebels launched military action on the 28th (local time), firing missiles toward Israel. International oil prices are on the rise due to attacks by these Iran-linked groups. Brent crude futures for May delivery, an international oil benchmark, were trading at $115.09 a barrel as of 8:15 AM KST on the 30th, up 2.2% from the previous trading session. West Texas Intermediate (WTI) crude futures for May delivery also climbed 2.4% to $102.03 a barrel over the same period.

The escalating geopolitical tensions also impacted the stock market. As of 8:15 AM KST on the 30th, futures for the three major New York stock indices – the Dow Jones, S&P 500, and Nasdaq 100 – all saw declines of 0.5-0.6%.

The Bab el-Mandeb Strait, at the entrance to the Red Sea, is a route through which 10% of the world's seaborne crude oil trade passes. Chevron CEO Mike Wirth noted that the repercussions of any Strait of Hormuz blockade had not yet been fully reflected in the oil futures curve.