BP (British Petroleum) has taken the same action as other freight companies such as Maersk, MSC and Hapag-Lloyd:
Stopping their shipments through the utmost important Red Sea.
The Red Sea has been a massive chokepoint of international trade, with over 10% of international trade crossing the Suez Canal.
However, its waters have now been contested and undermined by Houthi rebellious groups in Yemen.
Houthis have increased their influence in the area since the start of the Israel-Hamas war.
They have been using anti-ship missiles and drones to harass any potential trade that could land in Israeli ports, specifically barricading the Bab al-Mandab Strait.
It would be expected that commodities such as oil will continue to rise in price should supply continue to be disrupted.
Companies will be forced to undergo almost 10 extra days of navigation, bordering around Africa. Probably stopping by in the Cape of Good Hope.
Definitely an event to keep an eye on, since even though Houthis won’t be able to block the Red Sea, the attacks have been serious enough to browbeat shipping giants.