BP is the latest company to pause Red Sea shipments over fears of Houthi attacks

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The attacks on commercial vessels in the Red Sea by Yemen’s Houthi rebels have scared off some of the world’s top shipping companies and oil giants

LONDON — The attacks on commercial vessels in the Red Sea by Yemen's Houthi rebels have scared off some of the world's top shipping companies and oil giants, effectively rerouting global trade away from a crucial artery for consumer goods and energy supplies that is expected to trigger delays and rising prices.

BP said Monday that it has “decided to temporarily pause all transits through the Red Sea,” including shipments of oil, liquid natural gas and other energy supplies. Describing it as a “precautionary pause," the London-based oil and gas corporation said the decision faces ongoing review but crew safety was the priority.

Both oil and European natural gas prices rose partly over market nerves about attacks by the Iranian-backed Houthis, who confirmed two new attacks Monday. It is the latest targeting of container ships and oil tankers passing through a narrow waterway that separates Yemen from East Africa and leads north to the Red Sea and Suez Canal, through which an estimated 10% of the world’s trade passes.

Besides critical energy supplies reaching Europe and beyond on tankers, food products like palm oil and grain and most of the world’s manufactured products move by container ships — many of them heading through the Suez Canal.

“This is a problem for Europe. It’s a problem for Asia,” said John Stawpert, senior manager of environment and trade for the International Chamber of Shipping, which represents 80% of the world’s commercial fleet.

He noted that 40% of Asia-Europe trade normally goes through the waterway: “It has the potential to be a huge economic impact.”

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