Oil prices rose sharply in trading amid concerns that fighting between Saudi Arabia and Yemen could disrupt global oil supplies. Wednesday, Saudi Arabia announced it would participate in airstrikes in coordination with other countries against Houthi rebels, a group which is taking over the country with support from Iran. However, with oil having recovered 10% of its price since its recent low due to increased demand, traders have begun to pay attention to the effect of geopolitical instability on oil supply. “The importance of this is perhaps that the market has begun to react to geopolitical supply risks once again, a trend that has been absent in recent months,” analysts at Energy Aspects noted. Traders are particularly worried about Yemen’s proximity to the Bab el-Mandeb Straits, a vital shortcut to the Suez Canal- if tankers were unable to pass through this straight, they would have to go around Africa, which would increase cost.