Oil Prices Surge Following U.S. President’s Remarks on Iran and Houthi Attacks
Oil prices experienced an uptick during the latest settlement on Monday, following comments from President Donald Trump, who stated that the United States would hold Iran accountable for any future assaults by the Houthis, the armed faction in Yemen responsible for ongoing attacks on commercial vessels.
U.S. crude oil futures rose by 40 cents, or 0.6%, concluding the day at $67.58 per barrel.
Similarly, Brent crude saw an increase of 44 cents, or 0.62%, ending at $71.02 per barrel.
President Trump remarked, “Every shot launched by the Houthis will be interpreted as a shot executed by Iran’s weapons and leadership. Iran will bear responsibility and face severe consequences.”
In the context of escalating tensions in the Red Sea, U.S. military action against Yemen has reportedly resulted in at least 53 casualties, marking the largest military operation in the region under President Trump since he assumed office in January. A U.S. official indicated that this military campaign could extend over several weeks.
The Houthi attacks in the Red Sea have sparked significant disruptions in global trade, prompting the U.S. military to initiate a costly campaign aimed at intercepting missiles and drones launched by the group.
Outlook on Oil Prices
Oil prices saw a modest rebound last week, breaking a three-week streak of declines, amidst growing apprehensions regarding a slowdown in the global economy due to escalating trade tensions between the U.S. and various nations.
In light of these developments, Goldman Sachs analysts have lowered their forecasts for oil prices, citing a projected deceleration in U.S. economic growth as a result of tariffs imposed by the Trump administration on countries including China, Mexico, and Canada.
Analysts revised their December 2025 projections for Brent crude by $5 down to $71 per barrel (West Texas Intermediate crude to $67), with expectations for Brent crude now set at a range of $65 to $80. Moreover, the average forecast for 2026 was adjusted down to $68 for Brent crude, and $64 for West Texas Intermediate crude.
Industry experts noted that global demand for oil may grow at a slower pace than previously anticipated, while OPEC and its allies (OPEC+) are likely to experience production levels higher than prior estimates.