PRICE OF OIL JUMPS<\/h2>\nIn Hodeidah, the main port, a resident who gave only his first name Mahmoud said troops were spreading through the streets and military vehicles were leaving barracks with security escorts.<\/p>\n
Britain’s defence ministry said early indications were that “the Houthis’ ability to threaten merchant shipping has taken a blow”. James Heappey, a junior defence minister, said no further action was planned for now.<\/p>\n
The price of oil\u00a0rose sharply on concern<\/a>\u00a0that supplies could be disrupted, with Brent crude up $2 on Friday. Commercial ship tracking data showed at least four oil tankers\u00a0diverting from the Red Sea<\/a>.<\/p>\n
Iran, which supports armed groups around the Middle East including both the Houthis and the Hamas militants that control Gaza,\u00a0condemned<\/a>\u00a0the U.S. and British attacks.<\/p>\n
FEARS OF ESCALATION<\/h2>\nHouthi attacks on commercial ships have forced shipping lines to send vessels on a longer, costlier route around Africa, creating fears that a new bout of inflation and supply chain disruption could derail the global economic recovery.<\/p>\n
Carmaker Tesla said delays to parts supplies from Asia due to Red Sea unrest had forced it to\u00a0shut its factory<\/a>\u00a0in Germany for two weeks, the first big manufacturer to make such an announcement.<\/p>\n
“The concern is that this could escalate,” said Andreas Krieg at King’s College in London.<\/p>\n
Saudi Arabia called for restraint and\u00a0“avoiding escalation”.<\/a>\u00a0The Saudis have for nearly a decade backed the opposing side in a war against the Houthis, which has lately been in a delicate state of U.N.-backed peace negotiations.<\/p>\n