BP to pause all tanker transits through Red Sea

Oil and gas giant BP Plc said it will pause all shipments through the Red Sea following an escalation of attacks on merchant shipping by Houthi militants, Report informs, citing Bloomberg.

“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 company said in a statement.

Europe’s headline natural gas price surged by as much as 7.9% on the news, which is probably the most concrete sign yet of disruption to energy flows following the attacks. Brent oil futures also rose.

BP said that the welfare of its crew is the company’s priority, underscoring that commercial pressures are for now taking a back seat in the firm’s decision-making.

The canal has emerged as the main route for global LNG trade over the past two years, bolstered by Europe’s appetite for the super-chilled fuel as the main replacement of piped Russian gas.