Oil major BP becomes latest to pause Red Sea shipments as Houthi attacks continue

BP has become the latest firm to pause travel through the Suez Canal following a series of attacks on vessels by Houthi militants from Yemen.

In a statement Monday, BP said the safety of its workers was its priority.

“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,” it said. “We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”

Shipping giants MSC, Hapag-Lloyd, CMA CGM and Maersk have also all announced suspensions of travel through the Red Sea due to the drone threat, meaning no access to the key link between Europe and Asia between the Middle East and North Africa.

Analysts say the move could cause a major shock to global supply chains.

“You are going to see some fairly seismic activity in terms of the implications for supply chains” if all current and expected reroutings are sustained, Richard Meade, editor in chief at shipping journal Lloyd’s List, told CNBC Monday before BP announced its suspension.

The shipping industry has been unable to avoid getting sucked into geopolitical tensions around the Israel-Hamas war. Iran-backed Houthis have vowed to continue strikes against Israel and ships heading toward Israel until “aggression” in the Gaza Strip stops. The Suez Canal runs through Egypt, which borders Israel to the south.

The latest incident was reported Monday, with U.S. officials telling Reuters the M/V Swan Atlantic — a chemical and oil products tanker — was attacked in the southern Red Sea by multiple projectiles launched from Houthi-controlled territory.

In response to the attacks, the U.S. is expected to announce an expanded maritime protection force in collaboration with Arab states.

For Meade, “a lot depends” now on naval…