Increase in Oil Prices in Global Market Coinciding with Arrival of Destroyer 'Alborz' in the Red Sea

On Tuesday, January 2, oil prices rose following the deployment of an Islamic Republic Navy destroyer to the Red Sea. In this context, the price of Brent crude oil in the global market increased by 2.5% to $78.97 per barrel, while the price of West Texas Intermediate crude oil rose by 2.5% to $73.43 per barrel. The Tasnim news agency, affiliated with the Revolutionary Guards, reported on Monday, January 1, that the Alborz destroyer entered the Red Sea through the Bab el-Mandeb Strait without providing details about its mission. This action by the Islamic Republic coincides with rising tensions in the region, including the Red Sea, and the news regarding the predetermined departure of the aircraft carrier 'Gerald Ford' from the Mediterranean Sea. The Associated Press reported that this action by the Islamic Republic followed the destruction of three boats belonging to the Tehran-backed Houthis and the killing of 10 of the group's militants by the U.S. Navy. Meanwhile, U.S. Central Command (CENTCOM) stated that this action was taken after the cargo ship 'Maersk Hangzhou,' flagged in Singapore, was struck by a missile while moving in the southern Red Sea. The Houthi spokesperson claimed that the boats were performing 'official duties to secure maritime routes.' The 'Times of Israel' reported that since the Hamas militants' attack on Israel on October 7, the Iran-backed Houthis have attacked at least 20 ships passing through the Red Sea. The newspaper noted that despite the Islamic Republic's claims that the Houthis operate independently, evidence suggests that this group has used Iranian-made aerial systems and cruise missiles in their recent attacks. David Cameron, the British Foreign Secretary, stated a few days ago on social media platform X: 'I have made it clear that Iran, given its long-standing support for the Houthis, bears responsibility for preventing these attacks, which endanger innocent lives and the global economy.' The Red Sea is a route for ships that carry about 12% of global trade through the Suez Canal and is vital for transporting goods between Asia and Europe. The Houthi attacks on commercial ships passing through the Red Sea have disrupted global trade, forcing major shipping companies to choose a longer and more expensive route around the Cape of Good Hope in southern Africa instead of the Suez Canal. The British Defense Minister stated: 'We are ready to attack Houthi rebels in Yemen.' The Houthi missile attack prompted a response from two U.S. warships. Continued Houthi attacks on ships led 'Maersk' to halt its passage through the Red Sea for 48 hours. Several explosions occurred along the shipping route in the Red Sea near the Yemeni coast. The U.S. stated that the Islamic Republic has extensive involvement in the attacks on ships in the Red Sea.