Shell, a British oil major, has decided to temporarily halt all shipments through the Red Sea due to concerns about potential escalation.
The decision follows recent US and UK strikes on Yemen’s Houthi rebels, creating uncertainties for the company.
Shell’s move is a response to a series of attacks by the Houthi rebels, involving missiles and drones, targeting commercial vessels in the Red Sea.
The military actions by the West were triggered by these aggressive manoeuvres, indicating heightened geopolitical tensions in the region.
Speaking at the World Economic Forum in Davos, Shell’s Chief Executive Officer, Wael Sawan, commented: “We’ll have to see whether this becomes a longer-standing issue.”
Shell was contacted by Energy Live News and the company opted not to provide additional comments.
Yesterday, industry analyst Ricardo Evangelista, Senior Analyst at ActivTrades, issued a warning to Energy Live News about potential risks in global energy markets amid escalating tensions in Yemen and the Red Sea, noting a temporary rise in oil prices exceeding $80 (£63.1) per barrel.
