US-Led International Naval Operation To Guard Ships Along Red Sea Route As BP Suspends Shipments After Houthi Threat
The US-led international naval operation has decided to protect ships along the Red Sea route, with a number of shipping companies suspending their operations due to Houthi rebels intensifying their attacks on the vessels. The member countries in the security group include the UK, Canada, France, Bahrain, Norway, and Spain.
In a statement, US defense secretary Lloyd Austin said: “The recent escalation in reckless Houthi attacks originating from Yemen threatens the free flow of commerce, endangers innocent mariners, and violates international law.”
In a recent development, oil giant BP has joined the group of companies that suspended shipments through the Red Sea. BP cited the “deteriorating security situation” in the region as the reason to suspend the oil shipments. BP would keep monitoring the region during the “precautionary pause under ongoing review.”
In the wake of the decision, analysts warned of a hike in oil prices, with international benchmark Brent rising 2.6% to almost $79 a barrel.
“Right now, it”s unclear how significant the impact will be,” Gregory Brew, an oil historian and analyst at Eurasia Group, told the BBC.
“Though if more shipping companies divert their traffic and if the disruption lasts more than a week or two, prices are likely to climb further.”
The Red Sea is one of the world”s most significant routes for oil and liquefied natural gas shipments, as well as for consumer goods, with nearly 15% of goods imported into Europe, the Middle East, and North Africa being shipped from Asia and the Gulf by sea. That includes 21.5% of refined oil and more than 13% of crude oil, according to an analysis by S&P Global Market Intelligence.
“Consumer goods will face the largest impact, though current disruptions are occurring during the off-peak shipping season,” Chris Rogers from S&P Global Market Intelligence told the BBC.
Following a Houthi attack on their container shipments, shipping company giants A.P. Moller Maersk and Evergreen Line decided to suspend their operations along the Red Sea.
“Following the near-miss incident involving Maersk Gibraltar yesterday and yet another attack on a container vessel today, we have instructed all Maersk vessels in the area bound to pass through the Bab al-Mandab Strait to pause their journey until further notice,” Maersk said in a statement.
In an update seen by the BBC, Evergreen Line said: “For the safety of ships and crew, Evergreen Line has decided to temporarily stop accepting Israeli cargo with immediate effect and has instructed its container ships to suspend navigation through the Red Sea until further notice.”
The Houthi rebels are targeting ships travelling through the Bab al-Mandab Strait, also known as the Gate of Tears, which is a channel 20 miles (32km) wide, with drones and rockets declaring their support to Hamas, a Palestinian militant group that is fighting against Israel in Gaza. The Houthis argue that they were targeting the ships that carry goods to Israel.
Currently, ships are navigating around southern Africa instead of the Bab al-Mandab Strait. With the current route, ships take 10 extra days to reach their destinations, costing millions of dollars.
