BP BP Plc

By Christian Moess Laursen

BP will pause all oil-tanker shipments through the Red Sea after attacks in the area from Yemen's Houthi rebels, adding to similar moves from major shipping companies in recent days.

"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 London-based energy major told Dow Jones Newswires.

The decision will be under continuous review, as circumstances in the region evolve, it said.

In the past few weeks, ships have faced increased risk while transporting cargo through the region due to the attacks by Iran-backed Houthi forces on vessels.

On Friday, shipping and logistics giants A.P. Moller-Maersk and Hapag-Lloyd stopped their ships from using the southern entrance of the Red Sea after attacks on their vessels.

Germany's Hapag-Lloyd will reroute several ships via the Cape of Good Hope until the passage through the Suez Canal and the Red Sea are safe again, it said in a statement to Dow Jones Newswires on Monday.

On Saturday, two more major shipping firms, Italian-Swiss Mediterranean Shipping Company and France's CMA-CGM, said they would suspend passage through the Red Sea strait in response to the attacks and deteriorating situation.

In the first half of 2023, around 12% of globally traded seaborne oil was transported through Red Sea pathways and 8% of global liquefied natural gas shipments passed through the region.

Shell didn't immediately respond when contacted by Dow Jones Newswires.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

December 18, 2023 08:31 ET (13:31 GMT)

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