Oil prices surge as Trump warns Iran over Houthi attacks
What's the story
Oil prices rose sharply on Monday after US President Donald Trump warned Iran would be held responsible for any further attacks by Yemen's Houthi rebels.
The Houthis have earlier attacked commercial shipping in the Red Sea and Israel with missile strikes.
US crude oil futures gained 0.6% to settle at $67.58 per barrel and global benchmark Brent gained 0.69% to $71.07 per barrel.
Trump's statement
Trump holds Iran accountable for Houthi attacks
In a Truth Social post, Trump said, "Every shot fired by the Houthis will be looked upon, from this point forward, as being a shot fired from the weapons and leadership of IRAN."
He warned "IRAN will be held responsible and suffer the consequences," predicting dire repercussions.
This comes after US airstrikes on the Houthis over the weekend. Pete Hegseth confirmed operations would continue till the militant group stops attacking.
Shipping disruptions
Houthi attacks disrupt international shipping routes
The Houthis started striking commercial shipping in the Red Sea in 2023, after Hamas's surprise attack on southern Israel.
This has prompted international shipping companies to reroute container ships that would otherwise transit through these waters.
The US has been striking Houthi targets for several months now, after their relentless attacks on Red Sea shipping vessels which have heavily affected this crucial trade route.
US-Iran relations
Trump administration's stance on Iran
The Trump administration reimposed a "maximum pressure" campaign against Iran, seeking to cut the Islamic Republic's oil exports and destroy its economy.
The White House suspects Iran is seeking a nuclear weapon, an accusation the Islamic Republic denies.
Trump's national security advisor Mike Waltz said "all options are on the table" to stop Iran from acquiring a nuclear bomb, amid fears of an arms race across the Middle East.
Military operations
US strikes against Houthis continue
Following the Houthi missile strikes, the Pentagon confirmed US strikes against the Houthis are ongoing. The operations are aimed at degrading their ability to plan and conduct attacks.
"All options are on the table at this time," said Pentagon spokesman Sean Parnell when asked about potential military action against Iran.
He also reiterated the US will keep using "overwhelming lethal force" till it meets its objectives.