Oil Reclaims $100 as Ground Troop Deployment and Houthi Involvement Loom

[Financial News] Geopolitical tensions originating in the Middle East are intensifying, sending international oil prices sharply higher again. As fears grow that the war could escalate, the crude oil market is coming under strong upward pressure from the moment trading opens.
At 6:30 p.m. on the 29th (local time), West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) were up 3.50% at $103.10 per barrel. At the same time, Brent Crude Oil futures were also strong, rising 3.05% to $116.10 per barrel.
Crude oil futures on the New York Mercantile Exchange begin trading at 6 p.m. on Sundays. The fact that prices spiked immediately after the open is being read as a sign that the situation in the Middle East is deteriorating rapidly.
The latest surge is seen as reflecting concerns that the war could spread into multiple fronts, amid signs the United States is preparing to deploy ground troops and the possibility that Houthi rebels in Yemen could join the conflict. There is also growing caution across the market that, if supply disruption risks materialize, instability in global crude supply and demand could persist for an extended period.
Oil prices had already jumped sharply over the previous weekend. WTI rose 5.46% to $99.64 per barrel, while Brent Crude Oil gained 4.22% to $112.57. These are the highest levels since Russia’s invasion of Ukraine.
Equity markets are moving in the opposite direction. At the same time, Dow Jones Industrial Average (DJIA) futures were down 0.69%, S&P 500 Index futures fell 0.56%, and Nasdaq futures slipped 0.58%, underscoring a clear shift toward risk aversion. As the likelihood of a broader war increases, a familiar pattern is re-emerging: energy prices climb while financial markets contract.
The future path of oil prices will largely depend on whether ground troops are actually deployed and on the stability of key shipping lanes such as the Strait of Hormuz. If the war drags on or escalates further, upward pressure on oil prices is likely to intensify even more.

km@fnnews.com Reporter Kim Kyung-min Reporter