Escalation of Tensions in the Middle East

The US and its allies launched airstrikes on more than a dozen Houthi targets in Yemen, leading to fears of further disruption to shipping and a potential expansion of the conflict into a broader regional conflagration.
Brent jumped as much as 2.5% following the airstrikes, reflecting concerns about heightened geopolitical risks impacting oil markets.

Impact on Oil Prices
"The fluctuations in prices will absolutely remain in place as the situation develops," said Vandana Hari, founder of consultancy Vanda Insights. "It's an uneven tug-of-war between a bearish outlook on fundamentals and supportive Mideast risk premium." As such, both factors can be expected to remain influential over several months.
Market Reaction
The airstrikes have raised concerns about an escalation bringing focus onto both oil and haven demand in near-term trading activities according Charu Chanana, market strategist for Saxo Capital Markets Pte.