Predictably, oil prices jumped on Friday morning following targeted air and naval strikes on Houthi rebels in Yemen.Benchmark crude prices rose more than 2% in New York and London after the governments of the US and UK launched barrages of air and sea-based missiles on Houthi targets after Houthi attacks on shipping in the Red Sea.Canada reportedly played an indirect ‘supporting’ role in the attacks..For good or ill, the Alberta treasury benefits from global unrest; every dollar above its $71 target adds about $220 million to provincial coffers..West Texas Intermediate (WTI) was up about USD$1.51 to $73.53 per barrel while UK Brent climbed $1.61 to $79.02 after briefly surpassing a key psychological threshold of $80 per barrel.Alberta’s Western Canadian Select (WCS) bitumen blend gained about 82 cents to $54.Analysts said oil prices, which had been falling in recent weeks, could easily tack on another $5 to $7 per barrel in the coming days and weeks as tensions grow in the Middle East..Although the Red Sea isn’t a major transit point for crude oil coming from the Persian Gulf, Iran on Thursday seized a tanker in the Strait of Hormuz while it was sailing to Turkey. And in fact, the Houthis are considered a proxy group controlled by Iran.While the disruptions to date have been minor, traders are worried the ongoing conflicts in Israel and Ukraine could escalate into a broader regional war.Attacks in the Red Sea, which accounts for about 15% of the world’s shipping traffic, have prompted shipping companies to reroute tankers away from the Suez Canal to South Africa around the Cape of Good Hope..The Persian Gulf, meanwhile, sees about a fifth of the world’s oil supplies — about 20.5 million barrels per day — move through waters bordering Iran and OPEC kingpin Saudi Arabia. "If a large part of Strait of Hormuz flows were to be halted, it would present up to three times the impact of the 1970s oil price shocks and over double the impact of the Ukraine war on gas markets, atop already fragile supply chains and stock levels," said Saul Kavonic, an energy analyst at MST Marquee as per Reuters.American President Joe Biden said the "targeted strikes" sent a “clear message that the United States and its partners will not tolerate attacks on its personnel or allow hostile actors to imperil freedom of navigation."Saudi Arabia, meanwhile, said it was monitoring the situation with “great concern.”"The kingdom emphasizes the importance of maintaining the security and stability of the Red Sea region, as the freedom of navigation in it is an international demand," the Saudi Foreign Ministry said in a statement..The Russian foreign ministry meanwhile, said “The US air strikes on Yemen are another example of the Anglo-Saxons' perversion of UN Security Council resolutions."Added Iran-backed Hezbollah: "The American aggression confirms once again that the U.S. is a full partner in the tragedies and massacres committed by the Zionist enemy in Gaza and the region."For good or ill, the Alberta treasury benefits from global unrest; every dollar above its $71 target adds about $220 million to provincial coffers.
