Oil prices recover as Red Sea conflict prolongs

Oil prices rebound as U.S. strikes back in Red Sea conflict

Oil prices rose in Asian trade on Tuesday, recovering slightly from steep losses in 2023 as U.S. forces struck back against the Iran-backed Houthi group in the Red Sea, with the conflict showing little signs of de-escalation. The U.S. strikes over the New Year weekend resulted in the deaths of approximately 10 Houthi fighters and the sinking of three boats belonging to the Yemeni group. These actions were taken in response to a series of strikes by the Houthis on military and commercial vessels in the region. Despite these retaliatory measures, the Houthis have stated their intention to continue their attacks, citing them as retaliation for the Israel-Hamas conflict. Meanwhile, Iran has refused to end its support for the Houthi group, further escalating tensions in the Red Sea.