The Red Sea, which separates Africa and the Arabian Peninsula, is an important global trade route. In recent times, ships transporting goods through this route have come under attack by Iran-backed Yemeni Houthi rebels. The Houthis, who support the Palestinians in the ongoing war in the Gaza Strip, have attacked ships that may be transporting oil to Israel. Because of this, the major oil company BP announced yesterday that it is temporarily suspending cargo transportation through the Red Sea.
Maersk, the world’s second largest shipping company, announced the same decision on Friday. This action was taken after the company’s container ship was almost attacked by the Houthis. Several countries, led by the United States, announced yesterday that they will protect the Red Sea shipping route.
Great Britain, Canada, France, Bahrain, Norway and Spain will cooperate in this operation. “The Houthis’ reckless attacks from Yemen threaten the free flow of trade, endanger innocent seafarers and violate international law,” Pentagon chief Lloyd Austin said in announcing the decision. If the Red Sea shipping route is closed and ships take a detour, there is a risk that oil prices will rise.
Brent crude rose 2.6 percent to $79 a barrel on Monday after BP’s announcement. If shipping companies choose other routes and the Red Sea shipping disruption lasts longer than a week, oil prices will rise further, the researchers concluded. 15 percent of the total cargo traffic from Asia and the Persian Gulf to Europe, the Middle East, and North Africa passes through the Red Sea. 21.5% of it is refined oil and 13% is crude oil.
Houthi rebels attack ships as they enter the 32km-wide Bab al-Mandab Strait of the Red Sea. If the ships were to leave the Red Sea and go around the southern tip of Africa, the journey would be extended by 10 days and costs would increase by millions of dollars. Even ships that are not affiliated with Israel have been attacked by the Houthis.
Source: BBC
