Oil prices rose on Tuesday due to mounting concerns over potential trade disruptions triggered by ongoing US airstrikes in Yemen and intensified criticism by US President Donald Trump toward Federal Reserve (Fed) Chairman Jerome Powell.
International benchmark Brent crude rose by around 1.1%, trading at $66.50 per barrel at 11.03 a.m. local time (0803 GMT), up from $65.77 at the previous session's close.
US benchmark West Texas Intermediate increased by about 1.2%, reaching at $63.42 per barrel, compared to its prior session close of $62.64.
The increase in both benchmarks was driven by escalating US military operations in Yemen. The Houthi-run Al-Masirah TV channel reported on Monday that US warplanes had launched fresh airstrikes in the country.
Although no specific details were provided about casualties or targets, the outlet claimed that 25 airstrikes had hit the At Tuhayta District in Yemen's Al Hudaydah governorate since Monday morning.
The US has not officially commented on the reports.
On Sunday, the Houthi movement warned that the US was preparing for a ground operation in Yemen, cautioning that such action 'threatens to fully destabilize the situation.'
Since March 15, the US has conducted hundreds of airstrikes in Yemen, resulting in the deaths of 217 civilians and injuries to 436 others—mostly women and children—according to Houthi sources, which do not include casualties among their own forces.
Last month, Trump stated he had ordered 'decisive and powerful military action' against the Houthis and later vowed to 'completely annihilate them.'
The Houthis have been targeting commercial vessels in the Red Sea, the Bab al-Mandab Strait, the Gulf of Aden, and the Arabian Sea since November 2023.
Attacks were temporarily halted following a January ceasefire in Gaza but resumed after Israel renewed airstrikes on the enclave last month. The renewed threat to maritime security in the Red Sea is intensifying fears of disruptions in global oil supply, lending support to rising oil prices.
Meanwhile, Trump's ongoing pressure on Fed Chair Powell to lower interest rates has also contributed to upward momentum in oil prices by raising concerns about the Fed's independence. Trump warned that the US economy could slow unless 'Mr. Too Late, a major loser, lowers interest rates.'
While concerns about the central bank's independence persist, analysts note that lower interest rates—along with a weaker dollar and heightened economic activity—could push oil prices higher in the coming months.
The US Dollar Index, which tracks the greenback against a basket of major currencies, declined by 0.04% to 98.31, further supporting the rise in oil prices.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr