Oil prices surged over 3% on Wednesday following a stern warning from the United States regarding Houthi militants' activities in the Red Sea, coupled with a commitment from OPEC to maintain solidarity in supporting oil prices, according to a report by CNBC.

The West Texas Intermediate (WTI) contract for February experienced an increase, rising by $2.32, or 3.29%, settling at $72.70 per barrel. Similarly, the Brent contract for March saw a significant uptick, adding $2.36, or 3.11%, and settling at $78.25 per barrel.

(Photo : PHILIPPE LOPEZ/AFP via Getty Images)
A truck drives past Maersk and Cosco containers at the deep-sea port of Shanghai on June 2, 2011.

Growing Tensions in the Red Sea

The surge in oil prices can be attributed to escalating tensions in the Red Sea, where Houthi militants, supported by Iran and based in Yemen, claimed to have targeted the CMA CGM Tage container ship. However, French shipping giant CMA CGM refuted the claim, stating that the vessel did not experience any incidents.

Following the recent move by Danish shipping giant Maersk to indefinitely halt all shipping operations in the Red Sea due to recurrent Houthi attacks on vessels, the German shipping firm Hapag-Lloyd has similarly affirmed its decision to steer clear of the Red Sea.

READ ALSO: Shipping Giant Maersk to Resume Red Sea Voyages With US-Led Security Force in Place

Joint Call

In response to the Houthi actions, the United States, along with eleven allies, issued a joint call on Wednesday for an immediate cessation of these "illegal attacks." 

The statement emphasized that the militants would bear responsibility for the consequences if they persist in threatening lives, global economic stability, and the free flow of commerce in the key waterways of the region.

National Security Council spokesperson John Kirby underscored in a White House briefing that the United States is not seeking conflict with any nation or actor in the Middle East. However, he emphasized that the country would not shy away from defending itself, its interests, its partners, or the unhindered flow of international commerce. 

READ MORE: Shipping Giants Maersk, Hapag-Lloyd Begin Rerouting Ships to Avoid Red Sea as Houthi Attacks Increase