2024.01.1208:45:00UTC+00Oil Prices Rally As Tensions In Red Sea Mount

Oil prices jumped over 2 percent on Friday after Iran seized an oil tanker off the coast of Oman and the U.S. and Britain hinted they may act against Houthis in Yemen.

Benchmark Brent crude futures soared 2.5 percent to $79.31 a barrel, while WTI crude futures jumped 2.7 percent to $73.90.

Regional tensions spiked after Iran seized a tanker with Iraqi crude destined for Turkey on Thursday in retaliation for the confiscation last year of the same vessel and its oil by the United States, Iranian state media reported.

"The Navy of the Islamic Republic of Iran seized an American oil tanker in the waters of the Gulf of Oman in accordance with a court order," the state-run IRNA news agency said.

Meanwhile, heavy U.S. and British air strikes pounded targets in Yemen early today, weeks after the Houthi rebels allegedly unleashed disruptive attacks on Red Sea hurting commercial shipping on the trade route.

Oil prices also received some support after customs data showed China's annual crude oil imports hit an all-time high in 2023.