Oil prices rise as BP suspends operations in Red Sea amid attacks
by Miranda Nazzaro - 12/18/23 12:47 PM ET
Oil prices rose by more than 2 percent Monday as various companies, including BP, suspended shipping operations in the Red Sea amid attacks by Yemen’s Houthi rebels on multiple vessels.
The price of Brent Crude Oil, a European benchmark used for global market purchases, rose to $78.50 a barrel, an estimated 2.5 percent increase over Sunday, according to MarketWatch.
The jump comes just hours after London-based BP announced Monday it would temporarily pause all transits through the Red Sea “in light of the deteriorating security situation for shipping” along the major trade route.
Houthi rebels in recent weeks have upped their attacks against Israeli-linked vessels in the Red Sea with hopes of curbing Israeli airstrikes and ground attacks in Gaza amid Israel’s war with Hamas.
It appears their most recent attacks last week began to hit vessels with no clear ties to Israel, however, prompting concerns from major shipping companies that use the Red Sea as a vital corridor for cargo and energy shipments.
Earlier Monday, the Houthis claimed they attacked two commercial ships — the MSC Clara and Norwegian-owned Swan Atlantic — with naval drones after the ships’ crews did not respond to calls, Reuters reported.
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https://thehill.com/policy/energy-environment/4365717-oil-prices-rise-as-bp-suspends-operations-in-red-sea-amid-attacks/
