Crude Futures Start Year Higher On Red Sea Tensions

Crude oil futures are higher as tensions in the Red Sea flared over the New Year break, with the U.S. military saying it sank three of four small Houthi rebel boats that attacked a Danish container ship, and Iran’s semi-official Tasnim news agency reporting that an Iranian warship entered the Red Sea in what it said were “regular missions in international waters.” WTI for February is up 2% at $73.01 a barrel and March Brent is up 1.9% at $78.49 a barrel. While exchange of fire can’t be ruled out, keeping markets on edge, “we do not expect any serious interruptions of the flow of oil carries to be meaningful,” says Peter Cardillo, chief market economist at Spartan Capital.