Saudi Arabia tanker attack edges up oil prices despite dip in the dollar | City A.M.

Crude prices edged up earlier today following an attack on Saudi Arabian tankers in the Red Sea.

A strategic shipping lane was temporarily halted after Iranian-backed Houthi rebels attacked two large oil tankers, closing off one of Saudi Arabia’s major export channels.

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Brent crude oil maintained a slight rally and futures rose modestly in New York as a result, despite strength in the US dollar adding a downward pressure on prices.

The closure of Bab al-Mandeb Straight, which is vulnerable to attacks through its narrow lane, is the latest geopolitical twist to lead to a fluctuation in the price of oil, after months of turmoil in Venezuela and US rows with Iran over a nuclear deal also affected oil prices.

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Saudi Arabia, which is one of the world’s largest oil producers alongside Russia and the US, has previously faced security threats from Iran over its other major strategic shipping route in the Strait of Hormuz.