BP Suspends oil transport through the Red Sea.

It has been widely reported across the wires today that BP will suspend all oil transport through the Red Sea due to the risk of Attacks by Yemeni Houthis. Other companies are likely to follow and according to unconfirmed reports, all six major oil transporting companies have also followed suit.

The price of Oil rose 3% on Monday in response to the risk of supply disruption.

In related news, two aircraft carriers and fighter jets have been deployed by the United States to the Middle East amid Israel’s conflict with Gaza. Additional warships are reportedly being relocated from the Arabian Gulf to the Gulf of Aden to prevent Houthi attacks on the Red Sea. Two US carrier strike groups USS Eisenhower and USS Ford, are currently in the region. US Carrier Strike Group 2 CVN-69 spotted 188 km SE of the Bab al-Mandab Straight and will be in a position to launch attacks if ordered too.

US military assistance has enabled Israel to continue its extensive operations in Gaza without hindrance, ensuring that allies of Hamas are effectively deterred from taking any military action.

Despite these moves by the US, Houthis continue to attack and harass vessel off their coast effectively trying to blockade any Israel bound vessels. On Monday, the M/V Swan Atlantic, a tanker carrying chemical and oil products, was struck in the southern Red Sea by multiple projectiles launched from territory controlled by the Houthi rebels, as reported by United States officials. The Iran-backed group’s repeated attacks on various vessels in recent weeks have heightened global concerns about the threat to shipping in the region, posing potential risks to the broader global economy, particularly during the Israel-Gaza conflict.

The next few days and weeks will see this story develop further I am sure.