February 22, 2024

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Shell suspends all Red Sea crossings

Shell suspends all Red Sea crossings

British oil giant Shell has decided to stop using the Eritrean sea route for shipping until further notice after US and British strikes against Houthi rebels in Yemen raised fears of further escalation.

As reported Wall Street JournalLast month, a drone targeted a tanker chartered by Shell to transport fuel in the Red Sea while it was being harassed by Houthi ships.

Shell declined to comment on the Wall Street Journal report regarding the suspension of the crossings and the attack.

However, the company reportedly took action by halting all crossings Fearing that a targeted attack would cause a massive leak in the areaThey also pose safety risks for ship crews, officials familiar with the matter said.

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It was noted that About 12% of global seaborne oil trade passes through the Red Sea.

Short-circuit supply chains

the coincidenceThis decision is in line with other giant companies that decided to avoid the Red Sea. the baby It said last month that it would suspend all transportation through the main shipping lane and across the border Qatar Energy I did the same thing this week.

The Gulf state, which has served as a mediator for the Houthis in the past, has stopped using the Red Sea to export liquefied natural gas for fear of getting involved in the conflict, according to a Qatari energy official.

The Houthis launch attacks on Western oil tankers off the coast of Yemen. They claim that they are responding in this way to Israeli military operations in Gaza. In response, the Americans and British struck Houthi positions, raising fears of a new round of attacks.