Crude oil started the week about 3% higher, trading above $102 and remaining at its highest level since July 2022, when Russia’s invasion of Ukraine disrupted global energy markets. As the war in Iran entered its fifth week, investors grew increasingly doubtful about the prospects for a swift resolution, particularly after Iran-backed Houthi militants in Yemen joined the conflict and additional US troops were deployed to the region. The Houthis fired missiles at Israel over the weekend and signaled that attacks would continue until strikes against Iran and its proxies cease. The militant group also has the capacity to target vessels transiting the Red Sea and key Saudi Arabian energy infrastructure. Meanwhile, the US military is reportedly preparing for weeks of ground operations in Iran after ordering thousands of troops to the region. Trump also said he could “take the oil in Iran” and seize its export hub on Kharg Island, echoing the recent US military operation in Venezuela.
