Rising Middle East tensions increase the likelihood of US strikes on Houthi bases in Yemen

<p>Oil has traded higher in the early hours of the week.</p><p>Tensions in the Middle East are ratcheting a little higher. Houthi leadership was quoted as saying </p><ul><li>We will target them, We will make American battleships, American interests, and American shipping traffic targets of our drones, and our military operations</li></ul><p>While the US has been reluctant to conduct strikes against Houthi bases in Yemen continued attacks would seem to make such strokes more and more likely. </p><p>Over the past weekend US military forces repelled an attack on a Maersk container vessel in the Red Sea. US helicopters sank three Houthi ships.</p><p>Map via The Economist</p>

This article was written by Eamonn Sheridan at www.forexlive.com.