Oil prices jump after U.S. strikes against Iran-backed Houthi rebels

NBC News’ Ali Arouzi joins ‘Squawk on the Street’ to discuss the attacks on Iran-backed Houthis.

MILITARY STRIKES AGAINST TARGETS IN HOUTHI-CONTROLLED AREAS OF YEMEN. NBC’S ALI AROUZI JOINS US FROM TEHRAN WITH THE LATEST AT THIS HOUR. ALI? >> Reporter: HEY, MIKE. SO DESPITE REPEATED WARNINGS TO THE HOUTHIS TO STOP DISRUPTING THOSE VITAL WATERWAYS IN THE RED S SEA, THEY KEPT UP THEIR ATTACKS,

NOT ONLY INCREASING THEM, BUT MAKING THEM EVEN MORE SPECTACULAR, INCLUDING AN ATTACK AGAINST UK AND U.S. WARSHIPS JUST LAST WEEK, SO A STRIKE AGAINST THEM FELT IMMINENT AND IN THE EARL HOURS, THE UK AND U.S., ALONG WITH SUPPORT FROM OTHER MEMBERS OF THE COALITION,

HIT THE HOUTHIS HARD. STRIKES WERE REPORTED IN THE CAPITAL SANAA, IN THE RED SEA PORT AND THE NORTHWESTERN STRONGHOLD OF SADA. THERE WERE REPORTS 60 STRIKES FROM THE AIR AND SEA, INCLUDING OVER 100 MISSILES AND PRECISION-GUIDED MUNITIONS, HITTING 16 LOCATIONS, INCLUDING

COMMAND CENTERS, AIR DEFENSE RADAR SYSTEMS, PRODUCTION FACILITIES, AMMUNITION DEPOTS AND STORAGE DEPOTS FOR DRONES, WHICH IS VERY CRITICAL BECAUSE THE HOUTHIS HAVE USED DRONES AS ONE OF THEIR MAIN FORMS OF ATTACK IN THE RED SEA. NOW PRESIDENT BIDEN SAYS THE

STRIKES ARE IN RESPONSE TO ATTACKS BY THE IRANIAN BACKED HOUTHIS ON SHIPS IN THE RED SEA SINCE NOVEMBER AND IT’S HARDLY SURPRISING. THE ATTACKS BY THE IRAN BACKED HOUTHIS HAVE DISRUPTED TRADE AND THE FLOW OF FUEL. IT’S GIVEN A RISE TO THE COST OF SHIPPING, INSURANCE, AND FORCING

COMMERCIAL VESSELS TO TAKE THE LONG WAY AROUND FROM EUROPE TO — FROM ASIA TO EUROPE AROUND THE CAPE OF GOOD HOPE. THE HOUTHIS ARE VERY ANGRY. THEY SAID THEY’RE GOING TO RESPOND VERY STRONGLY AGAINST THE U.S. AND UK, SAYING THEY’RE GOING TO PAY A HEAVY PRICE FOR

THIS AGGRESSION. UNSURPRISINGLY, IRAN HAS STRONGLY CONDEMNED ATTACKS SAYING THE U.S. AND BRITISH MILITARY ATTACKS IN YEMEN ARE A CLEAR VIOLATION OF THE COUNTRY’S SOVEREIGNTY AND WILL ONLY RESULT IN FUELING INSECURITY AND INSTABILITY AND THE HOUTHIS SAY THEY’RE GOING TO CARRY ON THEIR

ATTACKS AND, OF COURSE, AS YOU MENTIONED, IT’S HAD A KNOCK-ON PRICE ON OIL, WHICH HAS JUMPED MORE THAN 2% AFTER THOSE ATTACKS. BRENT HAS GONE UP OVER 2.5%, INCHING TOWARDS $80 A BARREL, AND THAT’S EXACTLY WHAT IRAN WANTS. THEY WANT TO MAKE THIS VERY

EXPENSIVE FOR THE WEST TO NAVIGATE AROUND THERE. THEY WANT TO MAKE INSURANCE GO UP. THEY WANT TO MAKE INFLATION GO UP. THEY WANT TO MAKE THE PRICE OF OIL GO UP, WHICH ALSO HELPS IRAN BECAUSE THAT’S THEIR MAJOR COMMODITY TO SELL. NOW THE STRIKES ALSO CAME HOURS

AFTER IRAN SEIZED A TANKER HEADING TO TURKEY OFF THE COAST OF OMAN. THAT’S MAKING THE REGION EVEN MORE TENSE. THAT’S VERY CLOSE TO THE STRAIT OF HORMUZ, ONE OF THE MOST IMPORTANT SHIPPING ROUTES FOR OIL SUPPLIES, MORE THAN 20 MILLION BARRELS OF OIL MOVE

THROUGH THAT NARROW PASSAGE DAILY, THAT ACCOUNTS FOR LIKE A FIFTH OF GLOBAL CONSUMPTION. THE REGION IS NOW A VERY TENSE SITUATION, BRACING FOR THE NEXT STEPS, WONDERING WHAT’S GOING TO HAPPEN. ARAB GOVERNMENTS IN THE MIDDLE EAST, MANY OF THEM WESTERN ALLIES, ARE WATCHING CLOSELY TO

SEE WHAT HAPPENS, FOLLOWING THESE STRIKES. NOW IT’S IMPORTANT TO NOTE THAT MOST OF THEM DISLIKE THE HOUTHIS, BUT THE HOUTHIS ARE SUPPORTING HAMAS AND SO — WHICH IS VERY POPULAR ON THE ARAB STREETS SO IT MAKES AN AWKWARD SITUATION FOR THEM.

THE BIG QUESTION IS, ARE THE IRANIANS GOING TO GET INVOLVED? IT SEEMS UNLIKELY AT THIS STAGE, BUT THERE’S A LOT OF ROOM FOR MISCALCULATION. BACK TO YOU, CARL. >> MEANTIME ALI, A