BP halts oil and gas transits across the Red Sea over Houthi attacks

“In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea,” the company states.

The suspension applies to all ships owned by BP and those under its charter. This decision, marking a significant disruption to energy flows since the recent surge in attacks, closely follows the temporary halting of operations by the world's largest container shipping lines.

Other companies

According to CNN, over the past few days, MSC, Maersk, CMA CGM, and Hapag-Lloyd have all announced their intention to bypass the Suez Canal due to safety issues. Adding to this list on Monday, Evergreen Group's container shipping company stated that it would halt its Israel import and export service "with immediate effect until further notice."

Energy market

Going around Africa instead of using the Red Sea adds a lot more miles to trips and slows down the delivery of cargo. Oil experienced a significant surge in response to recent developments. Brent crude, the global benchmark, climbed by 1.1% to reach $77 per barrel, while US oil saw a 1% increase, reaching $72 per barrel.

Houthi attacks in the Red Sea

Since November, Yemeni Houthis have been attacking merchant ships in the Red Sea that allegedly have ties to Israel.

On December 16, a British destroyer used a Sea Viper missile to shoot down a drone that was trying to attack a merchant ship in the Red Sea.

Earlier in the week, a Houthi ground-launched cruise missile hit the commercial tanker Strinda. The vessel was seriously damaged and a fire broke out on board. The Norwegian-flagged ship was transporting vegetable oil and biofuel from Malaysia to Venice.

In response, the U.S. expanded maritime security forces in the Red Sea.