2024-01-16 18:52:00
Result of Houthi attacks Shell no longer transports oil through the Red Sea
January 16, 2024, 7:52 p.m. Listen to article
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Many shipping companies are avoiding the route through the Red Sea because of attacks by the Houthi militia. According to a media report, Shell is now following suit for fear of an oil disaster. In view of recent developments, experts expect that the situation could worsen further.
The British oil giant Shell has suspended its traffic in the Red Sea for an indefinite period of time, reports the Wall Street Journal. The decision was made last week in view of the threats posed by Yemen’s Houthi militia and the resulting risk of an oil spill in the region. The company initially declined to comment on the report.
Shell plc. 28,75
According to the US newspaper, a tanker chartered by Shell was targeted by a drone in December and harassed by boats carrying Houthi militiamen. Due to militia attacks on merchant ships in the Red Sea with drones and missiles, shipping traffic in the important trade route has been disrupted for weeks. At the end of last week, the British and US militaries attacked militia positions in Yemen. Due to fears of a further escalation of the conflict, the price of oil rose noticeably.
The Houthi attacks are also already leaving a clear mark on shipping. According to estimates by the economic research institute IfW, 70 percent fewer containers are transported through the Red Sea than expected. Many ships take the detour via the Cape of Good Hope at the southern tip of Africa, which means thousands of kilometers of detour and weeks of delays. The electric car manufacturer Tesla has to largely stop production near Berlin for around two weeks. The price of North Sea Brent crude oil rose by more than two percent on Friday morning.
The Houthis, who are close to Iran, point to Israel’s war against the radical Islamic Palestinian organization Hamas. The militia, which controls large parts of Yemen, sees itself as part of the self-proclaimed “Axis of Resistance” directed against Israel. In addition to Hamas, this also includes the Shiite Hezbollah militia in Lebanon.
The Red Sea connects the Indian Ocean with the Mediterranean via the Suez Canal and thus forms a central trade route through which up to twelve percent of world trade is carried out. Because of the Houthi attacks, many shipping companies have stopped or restricted traffic through the Red Sea and are diverting ships.
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