Oil price falls as Houthi offensive nears Bab-al-Mandeb Strait, but rises 9% for the week
Crude oil futures dipped on Friday following weekly gains driven by escalating conflict in the Middle East. The Houthis have advanced toward key maritime chokepoints, prompting strategic US military support while Gulf nations prepare diplomatic talks.
Oil prices dropped this Friday after a sharp increase during the week caused by developments in the Middle East conflict. Negotiated at the New York Mercantile Exchange, October WTI crude closed down 2.3% at $100.05 per barrel. November Brent futures ended lower by 2.81% at $104.61 per barrel, traded on the Intercontinental Exchange in London. For the week, WTI and Brent jumped 9.37% and 8.65%, respectively. Militant group Houthis moved toward Perim Island near the Bab-al-Mandeb Strait, risking the primary maritime alternative to the Strait of Hormuz. Government forces reportedly withdrew from the island while Houthis captured Dhahab in the Red Sea. Over 100 US military advisers are currently on Arabian soil providing intelligence and strategic support for targeting operations. Foreign ministers from the Gulf region must meet with Iranian Minister Abbas Araghchi next Monday in Oman.
