Oil prices rose during early Asian trade as concerns mounted regarding potential supply disruptions in the Middle East. According to reports from ANZ Research analysts, the market is reacting to news that the Iranian-backed Houthi militant group conducted a 'large-scale' attack against forces from Yemen’s Saudi Arabia-backed government. These reports indicate the attack resulted in killing and injuring 'hundreds' of troops.

This escalation follows ongoing threats to shipping in the Red Sea, which serves as a critical route for Saudi oil exports. The instability in this region has heightened fears that regional conflicts could further impact global energy supplies. Analysts note that the geopolitical tensions in the Middle East continue to drive volatility in the crude markets.

As a result of these supply concerns, front-month WTI crude oil futures have climbed by 1.0%, trading at $78.05 per barrel. Investors remain cautious as they monitor the unfolding situation in the Middle East and its potential long-term implications for global oil distribution and pricing stability.