BP suspends shipments through Red Sea after attacks on December 18, 2023 at 2:19 pm Business News | The Hill

Oil and natural gas company BP on Monday became the latest company to suspend shipments through the Red Sea following attacks by Yemen’s Houthi rebels on various vessels.

BP said it “decided to temporarily pause all transits through the Red Sea,” which includes shipments of oil, liquid natural gas and other energy, The Associated Press reported. The company said the decision, described as a “precautionary pause,” was under review, but it sought to prioritize the safety of its workers.

The Hill reached out to London-based BP for further comment.

The Houthis in recent weeks escalated attacks on Israeli-linked vessels in a maritime campaign to stop Israeli airstrikes and ground attacks in Gaza amid Israel’s war with Hamas.

The most recent Houthis attacks last week, however, hit or nearly missed vessels that don’t have clear ties to Israel, the news wire reported.

BP’s decision comes after four of the five world’s largest container shipping companies — A.P. Moller-Maersk, MSC, Hapag-Llyod and CMA CGM — halted or rerouted their movement in the Red Sea in the wake of increased attacks.

Hapag-Lloyd was operating the Al Jarash vessel last week when Houthis attacked it, the AP said last week. A Houthi spokesman, Brig. Gen. Yahoo Saree, claimed responsibility for the attack, vowing to stop ships from going toward Israeli ports in the Red Sea “until they bring in the food and medicine that our steadfast brothers in the Gaza Strip need.”

MSC Palatium III, a Liberian-flagged ship, also came under attack last week and caught fire.

Instead of traveling along the major trade route, ships will likely go around the Cape of Good Hope at the tip of Africa, adding days to their trips, the AP reported.

The pause in shipments is likely to prompt delays, longer transit times, greater fuel costs, along with the need for more ships, Simon Heaney, senior manager of container research for Drewry, told AP. Such disruptions in the global supply chain could also drive up consumer prices.

Oil prices continued to rise Monday, in part due to the suspended shipments, per Reuters. Brent Crude — a European benchmark used for global market purchases — went up 2.6 percent to about $78.56 a barrel on Monday.

​Business, International, BP, Houthi, Red Sea, yemen Oil and natural gas company BP on Monday became the latest company to suspend shipments through the Red Sea following attacks by Yemen’s Houthi rebels on various vessels. BP said it “decided to temporarily pause all transits through the Red Sea,” which includes shipments of oil, liquid natural gas and other energy, The Associated Press…