Several of the world’s major tanker companies on Friday halted traffic toward the Red Sea after U.S. and British airstrikes on Iran-allied Houthi militants in Yemen, says an article published on cnbc website.
Summary
- Hafnia, Torm and Stena Bulk confirmed that they halted traffic toward the Red Sea after airstrikes on Houthi militants in Yemen.
- The companies are among the world’s largest operators of petroleum product tankers, according to their websites.
- The multinational coalition advised ships to avoid transiting the Bab el-Mandeb Strait for “several days,” according to the International Association of Independent Tanker Owners.
Companies Cease Operations In Response To Advisory
Several major tanker companies, including Hafnia, Torm, and Stena Bulk, have temporarily halted traffic towards the Red Sea. This decision comes in the wake of U.S. and British airstrikes targeting Iran-allied Houthi militants in Yemen. These companies, among the world’s largest operators of petroleum product tankers, confirmed their suspension of operations in alignment with an advisory from the Combined Maritime Forces, a multinational coalition led by the U.S.
Multinational Coalition Advises Temporary Avoidance Of Bab el-Mandeb Strait
The multinational coalition has advised ships to avoid transiting the Bab el-Mandeb Strait for “several days.” The International Association of Independent Tanker Owners released a statement urging ships to remain outside the affected vicinity while a thorough assessment of the situation is conducted until daylight on Saturday, January 13th. The Bab el-Mandeb Strait connects the Gulf of Aden with the Red Sea, and approximately 7 million barrels of crude oil and products transit the Red Sea daily.
Market Response And Potential Escalation Risks
The news of the temporary halt in traffic has affected oil prices, with West Texas Intermediate futures spiking over 4% to $75.25 and Brent reaching $80.75 initially. However, prices have since moderated, with U.S. crude at $72.89 a barrel and Brent at $78.53. Analysts are closely monitoring the situation for any potential escalation to other critical waterways, such as the Strait of Hormuz, which sees 18 million barrels of crude and products transit daily.
Flashpoint In Lebanon Raises Concerns
Experts highlight Lebanon as a key flashpoint, where Israel has threatened action against Iran-allied Hezbollah. Hezbollah is considered Iran’s strategic ally, and any major Israeli attack might prompt Tehran to respond. There are concerns that Iran could target oil vessels in the Strait of Hormuz or oil infrastructure in the Arabian Gulf as a leverage point.
Houthi Attacks Prompt U.S. And British Airstrikes
U.S. and British warplanes conducted airstrikes against Houthi militants, allied with Iran, in response to repeated attacks on commercial vessels in the Red Sea. President Joe Biden stated that these strikes were in direct response to unprecedented Houthi attacks using anti-ship ballistic missiles. The U.S. Air Force carried out more than 60 strikes on 16 Houthi locations.
Houthis Vow Retaliation
In response to the airstrikes, the Houthis have vowed to retaliate. They have launched 27 attacks on shipping lanes in the Red Sea since November 19th, citing Israel’s military campaign in Gaza as the reason. The majority of these attacks targeted container ships, leading to a steady flow of tanker traffic in the Red Sea in December, while container ship traffic dropped by 31% compared to November.
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Source: cnbc
