Brent climbs 2% amid renewed Red Sea tensions

International benchmark Brent rallied 2% in American trade on track for the first profit in four sessions away from a two-week low, as Red Sea tensions grow once again.

Iran recently sent a war ship to the Red Sea after the US Navy destroyed boats belonging to the Yemeni Houthi group, making conditions in the vital passage too tenuous. 

Prices

Brent rose 2.0% to $79.03 a barrel, with a session-low at $76.93, after losing 0.5% on Friday, the third loss in a row, plumbing a two-week trough at $76.77 a barrel. 

Brent tumbled 4.2% in December, the third month in a row amid renewed concerns about global oversupplies as Russian crude exports increase, while US crude productions hits record highs.

Brent tumbled 10% in 2023, the first yearly loss in three years amid demand concerns as global economies slow down. 

Red Sea Tensions 

Iranian media said the country sent a warship to near the Red Sea, without mentioning much details. 

The step came after the US Navy destroyed three boats belonging to the Houthi group in Yemen, killing 10 militants in the process. 

US Central Command said it responded to an SOS message by a ship that carries Singapore flag, which came under fire from Houthi boats.