Shell halts oil shipments through Red Sea as attacks escalate
Business
Shell has suspended all oil shipments amid security concerns
(Web Desk) - Shell has suspended all oil shipments through the Red Sea amid security concerns about potential attacks by Yemen's Houthi rebel group, The Wall Street Journal reported Tuesday.
The British oil giant made the decision to temporarily halt transits through the Red Sea due last week, people with knowledge of the decision told the Journal.
Shell is concerned with the possibility of a massive oil spill and risks to the safety of its onboard crew at risk, the people said.
Shell did not immediately respond to The Messenger’s request for comment, and declined to comment on the pausing of Red Sea shipments to the Journal.
It was not immediately clear how Shell intended to continue deliveries in the immediate future; most carriers that have suspended shipments through the Red Sea have opted to divert vessels around Africa's Cape of Good Hope, a detour that can add as many as 14 days to shipping times.
Shell's shares were down 2% Tuesday morning.
Two missiles fired from Houthi territory in western Yemen nearly struck a commercial tanker carrying Shell MRPL Aviation Fuels & Services jet fuel, a joint operation of the oil giant and India’s national oil company, near the Bab el-Mandeb strait last month.
Shell joins British oil and gas giant BP, which indefinitely paused shipments through the region last month amid the deteriorating security situation in the area.
The region is a critical strategic choke-point, with total oil shipments through the Suez Canal and Bab el-Mandeb straits accounting for about 12% of total seaborne-traded oil in the first half of last year.
