Oil prices shot up three per cent Monday as more companies suspended shipping through the Red Sea following attacks on vessels by Yemen’s Iran-backed Huthi rebels.
Yemen’s Iran-backed Huthi rebels said Monday that they had attacked two “Israeli-linked” vessels in the Red Sea, the latest in a flurry of drone and missile strikes on vessels entering the waters, which are aimed at pressuring Israel over its war with Hamas in the Gaza Strip.
Five of the world’s six largest shipping companies have announced they will not send ships through the Red Sea. On Monday, British oil giant BP and Taiwan’s Evergreen became the latest to suspend transit.
Ships must travel through the Red Sea to use the Suez Canal, a key transit route for cargo and oil.
Investors are also keeping tabs on the Bank of Japan’s meeting this week, though speculation it will shift away from a policy of not hiking rates has faded.
Equity indices are still set to end the year on a high note after the Fed suggested last week it would begin loosening monetary policy as US data shows inflation coming down and the economy on course for a soft landing.
The Dow and Nasdaq last week hit record highs on Wall Street as tech firms surged, but the buying frenzy slowed Friday as investors took a step back, which analysts said was to be expected after the advances.
The Paris CAC 40 and Frankfurt’s DAX indices also hit all-time peaks last week.
