BP has halted all shipments of oil and gas through the Red Sea after a step-up in attacks on cargo ships by Houthi militants in Yemen.
According to The Guardian the British oil company said on December 18 that it had paused shipping in the region indefinitely, citing a “deteriorating security situation” amid tensions in the Middle East.
BP is the first oil company to directly halt its own shipping, after five major ocean carriers halted service through The Bab al-Mandab strait, also known as the Gate of Tears, which is the only route south into and out of the Suez Canal.
BP said in a statement: “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”
Supply chain technology and data company project44 said the impact on oil shipments is likely to increase, and cause spikes in gasoline, as well as downstream impact on inventory levels worldwide. “In 2022, the Middle East exported 15.4 million barrels of oil daily,” the company said in a December 16 statement. “So as conflict continues, major disruption to oil is anticipated.”
Separately on December 18, the global container shipping firm Evergreen said it was suspending journeys in the region “until further notice” due to “rising risk and safety considerations.”
