From Dow Jones & Company:

Crude oil prices climbed on Wednesday, marking the first gain since Christmas as tensions in the Red Sea raised the risk of a wider conflict in the Middle East. Prices surged 3% for WTI crude and 2.9% for Brent crude. However, prices had posted a fourth consecutive session decline the previous day. Explosions and fatalities occurred in Iran near a ceremony marking the anniversary of the death of Gen. Qassem Soleimani. The shutdown of Libya’s largest oil field amid protests hasn’t had much impact on oil prices, but attacks in the Red Sea have led major shipping companies to halt shipments and take longer routes, driving up transportation costs. Iran has dispatched a warship to monitor Red Sea shipping lanes, which could lead to further restrictions and a rising oil price. Overall, the situation in the Red Sea is leading to increased risks and costs for oil shipping.



Read more: Here’s what’s been keeping a lid on oil prices despite risks of a wider war in the Middle East