The escalating tensions in the Middle East pushed the price of crude crude up Thursday after Saudi Arabia and its Gulf Arab allies began a military operation in Yemen.
Iran-backed Houthi rebels besieging the southern Yemen city of Aden were targeted in the dawn attack by military attacks that included air strikes.
Arab producers who ship oil via the Gulf of Aden and Suez Canal to Europe were greatly hampered by the attacks.
Brent crude came up more than $3 a barrel to close to $60, a 2 1/2-week high. It last traded at $59.17, up 4.7 percent LCOc1.
The fall has cut living costs for consumers across the globe but has triggered fears of growth-sapping deflation. More than two dozen central banks have eased policy, driving yields on many low-risk bonds into negative territory.
The impact of Saudi Arabia’s air strikes in Yemen is a geopolitical risk, affecting strength of currencies across the globe.