Key takeaways:
- BP has suspended all gas and oil shipments through the Red Sea due to a surge in attacks on ships in the region from Houthi-controlled areas of Yemen.
- The move has caused global oil prices to jump, with Brent and West Texas Intermediate crude rising nearly 3%.
- The suspension of shipments by BP is a sign of the growing tensions in the region and could have a significant impact on the global energy market.
BP, one of the world’s largest energy companies, announced Monday that it has suspended all gas and oil shipments through the Red Sea due to a surge in attacks on ships in the region from Houthi-controlled areas of Yemen.
The move has caused global oil prices to jump, with Brent and West Texas Intermediate crude rising nearly 3% to $73.49 and $78.68, respectively, according to Bloomberg. BP’s decision to temporarily freeze shipments has fueled fears that geopolitical tensions in the Middle East could throttle energy supplies.
The Red Sea has seen a number of attacks on vessels by Houthi militants from Yemen in recent months, prompting several firms to pause travel through the Suez Canal. BP is the latest company to take such a precautionary measure.
The energy giant said in a statement that it will keep the pause under ongoing review, subject to circumstances as they evolve in the region. The suspension of shipments comes as U.S. bases in Iraq and Syria face daily attacks from Iran-backed militias.
The situation in the Red Sea has become increasingly volatile in recent months, and the suspension of shipments by BP is a sign of the growing tensions in the region. With global oil prices on the rise, the energy giant’s decision to pause shipments could have a significant impact on the global energy market.
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