Oil prices rise after Iran rejects calls to end support for Houthi Red Sea attacks

Brent crude is up 1.7% to $78.32 a barrel as hopes of strong demand in China also push up prices

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Oil prices have risen sharply after Iran rejected calls to end support for attacks by Houthi rebels on vessels in the Red Sea and sent a warship to the vital trading route.

In the first trading session of the new year, Brent crude rose $1.28, or 1.7%, to $78.32 a barrel on Tuesday, while US West Texas Intermediate crude was at $72.69 a barrel, up $1.04, or 1.5%.