BP pauses all Red Sea shipments after rebel attacks

BBC: BP has halted all oil shipments through the Red Sea due to increased attacks by Houthi rebels. The Houthis, targeting vessels they believe are en route to Israel, have escalated attacks in the region, compromising the safety of shipping operations. Consequently, many freight companies, including one of the world’s largest, Evergreen Line, have suspended Red Sea transits and stopped accepting Israeli cargo. The Red Sea, a crucial passage for oil, fuel, and consumer goods, is threatened by these attacks, particularly around the strategically significant Bab al-Mandab Strait.

Recent attacks include an incident involving the MT Swan Atlantic, a Norwegian-owned vessel managed by Singapore, with no Israeli connections. Israel has responded to Hamas attacks with a military campaign in Gaza. BP’s suspension of shipments, focused on safety, could impact crude prices, as Brent crude has already seen a slight increase. The shipping industry faces challenges, with companies like Maersk and MSC redirecting their vessels and the necessity to navigate longer routes around southern Africa, increasing costs and delaying shipments. The situation remains volatile, with ongoing reviews of the security status in the region.

The entire article can be read at the link https://www.bbc.com/news/business-67748605