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BP will pause all oil shipments through the Red Sea, in the latest sign of an escalation in the crisis caused by Yemeni rebels’ attacks on vessels in the area that is threatening a key route for global trade.
Oil prices rose on the decision. Brent crude, the international benchmark, added 1 per cent to $77.33 a barrel. The US equivalent, West Texas Intermediate, advanced 0.9 per cent to $72.10 a barrel.
“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 British energy company said in a statement on Monday. “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”
Shares in some of the biggest shipping companies also climbed on Monday, extending gains from last week. AP Møller-Mærsk, which operates the world’s second-largest container shipping fleet, rose 1.9 per cent, while Hapag-Lloyd, the world’s fifth-largest, rose 5 per cent. Both companies last week paused transits through the Red Sea because of the threat of attacks.
BP’s statement came hours after the UK’s maritime authority said it had received reports of “incidents” in the Red Sea and advised vessels to proceed in the region with “caution”.
