BP joins firms avoiding Red Sea after Houthi attacks

BP has become the latest firm to pause its tanker journeys through the Red Sea due to attacks from Yemen-based Houthi rebels. Five large shipping companies, including MSC and Maersk, are also avoiding the route after a string of attacks on merchant ships by the Iran-backed Houthis following the outbreak of the Israel-Hamas war. Lloyd Austin, America’s defence secretary, said this morning that the US and nine allies including the UK have formed a new maritime force to secure the waterway. Ships avoiding the Red Sea face adding over 3,000 nautical miles to their journeys by going around the Cape of Good Hope in southern Africa. Brent crude oil, the international benchmark, rose by three per cent after BP’s announcement, while the UK and Europe’s benchmark gas prices also jumped to more than eight and seven per cent respectively. Another key trade route, the Panama Canal, faces a different crisis. It suffered its worst drought in over 70 years in 2023, restricting shipping traffic – by mid-January it aims to offer 24 slots a day, down from 36.