BP halts oil shipments through Red Sea amid surge in Houthi attacks
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BP Plc, a British oil giant, has hit pause on their oil tanker journeys through the Red Sea due to a surge in attacks by Houthi militants on merchant ships.
They’ve made it clear: all transits through this zone are on ice until the security mess clears up.
The decision follows a series of assaults, prompting major container shipping companies to also suspend transits in the area.
This move has caused a surge in Brent oil futures, signaling a significant disruption in petroleum flows.
Avoiding the Red Sea means bypassing Egypt’s Suez Canal, forcing ships to take the longer route around Africa. This extension adds substantial mileage to voyages, leading to delays in cargo deliveries, increased fuel costs, and a rise in vessel demand.
In response to the escalating security concerns, a crewing company overseeing 44,000 seafarers has advised ship owners to explore alternative routes.
Meanwhile, the US and its allies are contemplating urgent measures to secure the Red Sea, critical for approximately 12% of global seaborne trade.
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