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Oil prices rise as Iran sends warship to Red Sea -
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Oil prices rise as Iran sends warship to Red Sea

Initially, Iran rejected accusations that it was helping Houthis carry out attacks against commercial ships in the Red Sea.

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Oil prices rise as Iran sends warship to Red Sea

TEHRAN: After rejecting accusations of support for Houthi rebels, the oil prices in the market have risen by $1.73, or more than 2%, to $78.77 a barrel on Tuesday. The Iranian Navy also dispatched a warship, the Alborz destroyer, to the crucial shipping lane in the Red Sea, where commercial ships have come under attacks from Yemen-based Houthi rebels.

map of Red Sea
Houthi attacks on ships in key trading route is disrupting global trade.

Oil prices rise

In the first trading session of the new year, Brent crude rose $1.73, or more than 2%, to $78.77 a barrel on Tuesday, while US West Texas Intermediate crude was at $73.36 a barrel, up $1.71, or 2.4%.

Prices were driven higher by fears of supply disruption amid the Red Sea tensions, which led to the Suez Canal.

The Alborz destroyer, Iranian Navy
The Alborz destroyer

Iran sends warship

Initially, Iran rejected accusations that it was helping Houthis carry out attacks against commercial ships in the Red Sea.

The destroyer, operating as a military vessel of the 94th flotilla of the Iranian Navy, crossed the Bab-el-Mandeb strait and entered the Red Sea on Monday.

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