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Energy prices likely to rise due to Red Sea conflict - European commissioner

Oil&Gas Materials 16 January 2024 13:56 (UTC +04:00)
Lada Yevgrashina
Lada Yevgrashina
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BAKU, Azerbaijan, January 16. Attacks of Yemeni Houthis on merchant vessels could lead to energy price hikes and inflation in European countries, said European Commissioner for Economy Paolo Gentiloni, Trend reports.

"We are aware that this year started with slower growth, some good news on the labor market, and growing concerns about the risks caused by geopolitical tensions, especially the one in the Red Sea," Gentiloni said.

Gentiloni called for a close monitoring of the situation.

"At the moment there is no evident impact on energy prices and inflation, but the consequences of the conflict of the US and the UK versus the Houthis may materialize in the coming weeks", - said the commissioner.

On the night of January 12, US and UK aircraft and warships carried out the first strikes on the military facilities of the Houthis in Yemen, in response to attacks on merchant ships in the Red Sea. According to US Central Command, more than 60 military sites were hit.

The Houthis have pledged to continue targeting vessels and threatened to attack US and British bases in the Middle East if the strikes continue.

Earlier, the Houthis claimed that they targeted only Israeli vessels.

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