Oil prices rose on Monday after the US pledged to continue its military offensive in Yemen until the pro-Iran Houthi group ends its attacks on shipping vessels.
Brent futures rose 41 cents, or 0.6%, to $70.99 a barrel by 0336 GMT, while WTI Crude futures rose 40 cents, or 0.6%, to $67.58 a barrel.
The Houthi attacks on shipping in the Red Sea have long disrupted global trade. The US airstrikes against the Houthis are the most significant US military operation in the Middle East since Trump took office in January.
Oil prices rose slightly last week, snapping a three-week losing streak fueled by concerns about a global economic slowdown caused by escalating trade tensions between the US and other countries.
Both indexes pared their gains after rising more than 1% in early Asian trading as China reported a mixed start to the year. Industrial production slowed in January-February, while retail sales growth accelerated slightly, government data showed on Monday.
The state council, or cabinet, unveiled what it called a “special action plan” on Sunday to boost domestic consumption and economic recovery after a slew of U.S. tariffs on China.
The effort threatens to disrupt the global trade order. It’s fair to expect the U.S. economy to grow more slowly than expected because of tariffs on countries like Canada, China, and Mexico.
Some analysts have cut their December 2025 Brent forecast by $5 to $71 a barrel, WTI to $67, and their average 2026 forecast to $68 for Brent and $64 for WTI.
Oil demand is expected to grow at a slower rate than previously expected, while supply from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) is expected to exceed forecasts.
U.S. consumer confidence fell to a nearly two-and-a-half-year low in March, and inflation expectations rose amid concerns that Trump’s sweeping tariffs will raise prices and weaken the economy.
Fed officials are expected to leave the overnight interest rate, which the administration has cut by 100 basis points since September, at a meeting next week, between 4.25% and 4.50% as they assess the economic impact of its policies.
