International Oil Prices Reach 7-Year High Due to Middle Eastern Tensions

The prices of oil surged to a seven-year high amidst worries about possible supply disruptions after Yemen’s Houthi group targeted Abu Dhabi in a drone attack.

The attack has escalated tensions between the Iran-aligned Houthi group and the Saudi-led coalition.

Brent crude futures rose $0.85 to $87.33 a barrel by 0525 GMT after earlier hitting a peak of $87.55, which is the highest since 29 October 2014. US West Texas Intermediate (WTI) crude futures also jumped to a more than two-month high of $84.95 a barrel.

Soon after the attack that killed three people, the Houthi group warned that it could target more facilities. The attack was condemned by the UAE’s Ministry of Foreign Affairs and International Cooperation, which said in a statement that it will not go unpunished.

“The UAE reserves the right to respond to these terrorist attacks and criminal escalation,” it declared.

Colder winter temperatures in the northern hemisphere have also driven up the demand for heating fuels, which has further supported the rise in oil prices, according to analysts. They expect the demand to outstrip the supply this year as the world continues to open up after almost two years of coronavirus lockdowns.

Analysts also expect talks on triple-figure oil prices to continue if the OPEC+ members fail to deliver on their 400,000 barrels per day each month increase.