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Oil price jumps back towards $80 a barrel amid mounting tensions in the Red Sea By Daily Mail City & Finance Reporter Updated: 17:00 EST, 2 January 2024 e-mail View comments The price of oil swung wildly as mounting tensions in the Red Sea were overshadowed by concerns about the global economy. On the first day of trading of the new year, Brent crude rose more than 2.5 per cent to as high as $79.03 having ended 2023 at around $77. The surge came after Iran sent a warship into the Red Sea following the sinking of three Houthi boats by US Navy helicopters over the weekend. The developments fuelled fears the war between Israel and Hamas terrorists in Gaza could escalate into a full-blown regional conflict, pushing up the oil price and causing chaos to global trade. But crude later gave up its gains, falling below $76 a barrel, as analysts said concerns about demand for oil amid a subdued outlook for the global economy were ‘keeping a lid’ on prices. Crude move: On the first day of trading of the new year, Brent crude rose more than 2.5% to as high as $79.03 having ended 2023 at around $77 ‘Oil markets got an initial lift-off after the attacks in the Red Sea but we had trouble sustaining those gains,’ said Tim Evans, an independent oil analyst. Houthis, a Yemeni rebel militia backed by Iran, have been launching missile and drone attacks on cargo ships in the Red Sea since November in response to the war in Gaza. This has caused major disruption to global trade with shipping companies sending vessels around the south of Africa rather than through the Red Sea and Suez Canal. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘Worries about the conflict becoming more complex have bubbled up again amid heightened tensions in the Red Sea. This is increasing concerns about potential supply problems in the region, putting upwards pressure on crude.’ RELATED ARTICLES Previous 1 Next Tech jobs risk being replaced by AI, Nobel Prize-winning... High Street banks must recognise that branches matter,... 'I'm optimistic about Britain': Glaxo chief defies the gloom... Bitcoin tops $45,000: Cryptocurrency at highest for nearly... Share this article Share HOW THIS IS MONEY CAN HELP How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account DIY INVESTING PLATFORMS Easy investing Stocks & shares Isa £1.50 fund dealing 0.25% fee on fund holdings Investment ideas Free fund dealing Free fund dealing 0.45% account fee capped for shares Flat-fee investing No fees From £4.99 a month Trade shares and funds for £3.99 Social investing Social investing Share investing 30+ million global community Model portfolios Investment account Free fund dealing Free financial coaching Affiliate links: If you take out a product This is Money may earn a commission. This does not affect our editorial independence. > Compare the best investing platform for you Share or comment on this article: Oil price jumps back towards $80 a barrel amid mounting tensions in the Red Sea e-mail Add comment Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence. Comments 0 Share what you think No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. Add your comment Enter your comment By posting your comment you agree to our house rules . Submit Comment Clear Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. No Yes Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy . More top stories
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