Oil rally pauses as Red Sea shipping risks plague global trade
Oil was little changed after two days of gains, as traders and shippers braced for the prospect of more disruption in the Red Sea.
Global benchmark Brent held near $79 a barrel after rising more than 3% in the previous two sessions. West Texas Intermediate was steady near $74. The US and its allies are considering possible military strikes against Iran-backed Houthi rebels in Yemen in recognition that a previously announced task force may not be enough to eliminate the threat to shipping in the vital waterway.
The escalated geopolitical risks have introduced a premium to an oil market plagued by skepticism about OPEC adhering to production cuts and concerns of increased supply from outside the cartel, especially from the US.
