Oil markets got a brusque reminder that geopolitical risk is alive and well Thursday when crude prices spiked in response to military actions by Saudi Arabia and other Arab states to contain the violence in civil-war wracked Yemen.
Prices in New York and London leaped as much as 6 percent in the morning on concerns about the potential spread of the conflict, as well as knock-on effects for oil production in Yemen and Saudi Arabia and oil transport through important global chokepoints like Bab el-Mandeb, by the Gulf of Aden. Oil prices slipped a bit by midday, but were still up …read more
Source: Foreign Policy
