Despite the raging war between Hamas forces and Israel’s army since October 7, a noteworthy feature is that global oil prices have so far not flared up. Although in the initial weeks, Brent crude spot prices remained elevated at $90 plus a barrel, they settled down to lower levels of around $79 a barrel in the last week of December 2023.
The attacks on shipping in the Red Sea by Yemeni Houthi forces contributed to upward momentum in the third week of December, but it petered out as concerns eased regarding any disruption.
