BP PLC (LSE:BP.) said it will pause all shipments through the Red Sea following an escalation of attacks on merchant shipping by Houthi militants.
“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 company said in a statement.
“We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region," the oil and gas giant said.
BP said that the welfare of its crew is the company’s priority, underscoring that commercial pressures are for now taking a back seat in the firm’s decision making.
Europe’s headline natural gas price jumped on the news while Brent oil futures also rose.
The world’s largest container shipping companies said over the past several days that they would put shipments through the waterway on hold following the wave of attacks.
Several tanker owners also said they were insisting on options giving them the right to avoid the area.