Crude futures rose Monday, lifted as attacks on shipping in the Red Sea by Houthi rebels heightened worries about supply disruptions from the Middle East.

Oil major BP PLC
BP,
-2.77%

BP,
+2.21%
on Monday said it would pause all transits through the Red Sea due to worries over worker safety, according to news reports. BP didn’t immediately respond to a request for comment.

Price action

  • West Texas Intermediate crude for January delivery
    CL00,
    +2.06%

    CL.1,
    +2.09%

    CLF24,
    +2.09%
    was up 49 cents, or 0.7%, at $71.92 a barrel on the New York Mercantile Exchange.

  • February Brent crude
    BRN00,
    +2.12%

    BRNG24,
    +2.12%,
    the global benchmark, was up 60 cents, or 0.8%, at $77.15 a barrel on ICE Futures Europe.

Market drivers

WTI rose 0.3% and Brent gained 0.9% last week, breaking a streak of seven straight weekly declines for both benchmarks, after attacks on ships traveling through the Red Sea by Iran-backed Houthi rebels that control most of Yemen.

Crude prices had risen modestly after the Oct. 7 Hamas attack on southern Israel on fears of a wider conflict, but soon gave up those gains to trade at roughly six-month lows early last week before seeing a modest bounce.

Last week’s Federal Reserve meeting, which saw policy makers signal that rates have likely peaked and reinforced market expectations for a series of rate cuts in 2024, also helped underpin crude, analysts said

“Fundamentally, the dovish-received Fed decision shored up hopes for a soft landing while economic data was mixed but notably not ‘bad enough’ to rekindle hard landing fears,” analysts at Sevens Report Research said in a Monday note.

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