Oil company BP said it was halting all oil shipments in the Red Sea due to recent attacks on tankers by Yemen’s Houthi rebels.
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This has already led to an increase in oil prices.
The oil giant says this is a temporary pause and the situation is being constantly assessed.
Many shipping companies in the Red Sea region have already stopped using the sea route as rebels threaten to fire at any ships they believe are heading to Israel.
According to Reuters, on Monday Brent oil rose in price by 2.5% and by the evening its price was $78.46. per barrel.
Analysts believe that if other major oil companies decide to stop shipping through the Red Sea, oil prices will go up even more.
The Red Sea is considered one of the world’s most important routes for transporting oil, liquefied gas and other goods.
Yemen’s Houthis on Monday announced they had struck two commercial ships with drones in the Red Sea, again citing their actions as a fight with Israel.
Companies are rerouting cargo around Africa, while the United States and European countries are considering how to ensure safe passage through the Red Sea to or from the Suez Canal.
The Houthis released a statement on Monday saying they had carried out a “military operation against two vessels associated with a Zionist entity” and that they intend to continue to stop vessels from entering Israeli ports.
The ships were the Norwegian Swan Atlantic and, according to the Houthis, the MSC Clara, owned by the Italian-Swiss company MSC.
The canal handles 15% of global maritime traffic, and shipping cargo from Asia to Europe and vice versa along the route around the Cape of Good Hope takes much longer and is much more expensive.
Meanwhile, the US is at odds with Saudi Arabia and the UAE over countering Houthi attacks on a ship in the Red Sea. Bloomberg reports this.
According to US officials, this “complicates the US attempt to develop a coherent response to the group (Houthis).”
It is noted that Washington is considering “military action against the Houthis, including attacks on their facilities, although they still prefer diplomacy.”
The UAE is pushing for military action and wants the US to redefine the Houthis as “terrorists”.
Riyadh supports a more measured approach, fearing that any belligerence will provoke the Houthis to become even more aggressive.
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.