BP has become the first oil major to pause all shipments through the Red Sea, citing a “deteriorating security situation” as Yemeni rebels’ attacks on ships transiting through the key global trade route escalate.
Brent crude, the international benchmark, jumped 1.9 per cent to $77.98 a barrel on the news. The US equivalent, West Texas Intermediate, advanced 1.9 per cent to $72.82 a barrel. UK’s benchmark gas price jumped more than 8 per cent, while its European peer rose over 7 per cent, on concerns about the shipment of liquefied natural gas.
The UK oil group’s decision comes as Iran-backed Houthi rebels have intensified their campaign against ships passing through the Suez Canal following the outbreak of the Israel-Hamas war. It raises the prospect of a prolonged disruption of a passage that handles about a tenth of global trade.