Oil giant BP has announced it is pausing all shipments of oil through the Red Sea after recent attacks on vessels by Houthi rebels.
The firm blamed the “deteriorating security situation” in the region as Iran-backed Houthis target ships they believe are bound for Israel.
Many freight firms have suspended journeys as the attacks continue.
Many freight firms have suspended journeys as the attacks continue.
Analysts suggested that if other large oil firms follow suit, oil prices could rise. Brent crude, the international benchmark foroil prices, increased to $78.44 per barrel.
“Right now it’s unclear how significant the impact will be,” said Gregory Brew, an oil historian and analyst at Eurasia Group.
“Though if more shipping companies divert their traffic, and if the disruption lasts more than a week or two, prices are likely to climb further.”
The Red Sea is one of the world’s most important routes for oil and liquefied natural gas shipments, as well as for consumer goods.
Oil giant BP has announced it is pausing all shipments of oil through the Red Sea after recent attacks on vessels by Houthi rebels.
Many freight firms have suspended journeys as the attacks continue.
The firm blamed the “deteriorating security situation” in the region as Iran-backed Houthis target ships they believe are bound for Israel.
Analysts suggested that if other large oil firms follow suit, oil prices could rise. Brent crude, the international benchmark foroil prices, increased to $78.44 per barrel.
Many freight firms have suspended journeys as the attacks continue.
Many freight firms have suspended journeys as the attacks continue.
Analysts suggested that if other large oil firms follow suit, oil prices could rise. Brent crude, the international benchmark foroil prices, increased to $78.44 per barrel.
“Right now it’s unclear how significant the impact will be,” said Gregory Brew, an oil historian and analyst at Eurasia Group.
“Though if more shipping companies divert their traffic, and if the disruption lasts more than a week or two, prices are likely to climb further.”
The Red Sea is one of the world’s most important routes for oil and liquefied natural gas shipments, as well as for consumer goods.
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