Oil prices rise as Iran war escalates with Houthi attacks

Oil prices surged above $116 per barrel Sunday after Iran-backed Houthi militants fired missiles and drones at Israel over the weekend and vowed to escalate attacks. Brent crude rose 3.3% to $116.25 while U.S. WTI crude climbed roughly 3% to near $103 per barrel, as the conflict entered its fifth week with little sign of de-escalation despite Trump administration diplomacy efforts. The spike reflects broader Middle East instability: the U.S. deployed more than 3,500 troops to the region including 2,500 Marines, while Iran's parliament speaker Mohammad Bagher Ghalibaf threatened to set American forces "on fire" and intensify strikes on U.S. allies. Energy analysts warn that if Houthis disrupt Red Sea shipping lanes—used as an alternative to the Strait of Hormuz, which handles one-fifth of global seaborne oil—it could trigger the most severe oil disruption in history. Gasoline prices edged to $3.98 per gallon Sunday, within cents of the $4 mark.