Escalating conflict in the Middle East is driving oil prices up.

Concerns about supply disruptions could help oil prices quickly regain the $80/barrel mark. (Illustration: Vietnam National Oil and Gas Corporation)

Specifically, Brent crude oil prices rose 1.2%, to $78.44 per barrel. US WTI crude oil prices increased 0.9%, to $72.02 per barrel.

Numerous attacks have taken place in the Gaza Strip, and tensions in the Red Sea show no signs of easing. US and British naval forces have shot down 21 drones and missiles fired by Houthi forces in Yemen toward the southern Red Sea.

In addition, in the Middle East, Iran seized an Iraqi crude oil tanker en route to Türkiye in retaliation for the US seizure of the same ship and Iranian oil last year.

Brent crude oil is trading at $78.44 per barrel. (Image: Screenshot)

According to Reuters, the US and UK have indicated they will take new measures if Houthi attacks continue. The UN Security Council has also adopted a resolution demanding an end to the Houthi attacks.

In addition, the rise in oil prices is also due to the weakening of the US dollar. A weaker dollar makes oil cheaper for buyers holding other currencies.

However, the US housing market is gradually recovering, which could potentially cause US home prices to rise again and put pressure on inflation.

Rising inflation could delay the Federal Reserve's (Fed) start to cut interest rates. Maintaining high interest rates for an extended period puts pressure on the economy and limits oil demand, negatively impacting oil prices.

Domestically, yesterday afternoon, retail fuel prices were adjusted in the price management session of the inter- ministerial committee of Finance and Industry and Trade. Kerosene prices increased the most, by 374 VND/liter; RON 95-III gasoline prices increased the least, by 19 VND/liter.

During this price adjustment period, the inter-ministerial committee allocated 300 VND/kg to the price stabilization fund for fuel oil, but did not allocate funds for gasoline, diesel, and kerosene, and did not use the price stabilization fund for any of these commodities.

Domestic retail fuel prices on January 12th are as follows: E5 RON 92 gasoline not exceeding 21,041 VND/liter; RON 95-III gasoline not exceeding 21,935 VND/liter; diesel fuel not exceeding 19,707 VND/liter; kerosene not exceeding 20,331 VND/liter; and fuel oil not exceeding 15,815 VND/kg.

Source: https://laodong.vn/kinh-doanh/xung-dot-leo-thang-o-trung-dong-day-gia-dau-di-len-1291538.ldo