Oil prices stabilized today, as investors monitored the impact that might befall oil supplies as a result of attacks launched by the Houthis in Yemen on ships in the Red Sea, to pressure the entry of aid into the Gaza Strip, which has been subjected to continuous Israeli aggression for 74 days, leaving more than 19,000 Palestinian martyrs. And more than 52 thousand wounded.
Brent crude futures rose 6 cents to $78.01 per barrel, by 07:26 GMT, and US West Texas Intermediate crude futures for the nearest month of maturity, which expire today, fell 18 cents to $72.29 per barrel. The most active second-month contract fell 10 cents, or 0.1%, to $72.72.
Yesterday, the giant British Petroleum (BP) temporarily suspended all transportation operations through the Red Sea. For its part, the oil tanker group Front Line said that its ships will avoid passing through the waterway, in an indication that the crisis is expanding to include energy shipments.
It should be noted that about 15% of global shipping traffic passes through the Suez Canal (which is located far north of the Red Sea), providing the shortest shipping route between Europe and Asia.
Marine operation
US Secretary of Defense Lloyd Austin announced, early today, the formation of a multinational force to protect trade in the Red Sea following attacks launched by the Houthis on ships heading to Israel, led by the United States, which will include joint patrols in the Red Sea.
Austin called on dozens of countries to take steps to confront Houthi attacks on ships, while speaking at a meeting of defense ministers to promote a new military operation to secure trade in the waterway.
He said: “These reckless attacks by the Houthis represent a serious international problem and require a firm international response.”
Reuters quoted market strategist at IG in Singapore, John Rong Yip, as saying: “Given the rapid collective response from several countries to mitigate the attacks, this may not provide much conviction that the unrest may be long-lasting, which led to some reservations that were reflected in prices.” Oil in today’s session.”
In a new development, the British maritime security company Ambrey said today that it had received information about a possible attempt to board a ship 17 miles west of the coastal city of Aden in Yemen, adding that the attack was unsuccessful and that all crew members were fine.
She explained in a memorandum: “A ship in the vicinity received a high-frequency call from a ship under a pirate attack at the site, and half an hour later, a plane arrived at the scene of the incident to comb the area.”
For her part, French Foreign Minister Catherine Colonna said during her meeting with her British counterpart David Cameron in Paris that France will take measures with its partners to put an end to Houthi attacks in the Red Sea. She added: “We know that the Houthis often receive support from Iran.”
“It’s unnecessary”
But the Houthis’ chief negotiator, Mohammed Abdel Salam, said that the group would not change its position on the conflict in Gaza due to the formation of a multinational maritime coalition to protect navigation in the Red Sea, as reported by Reuters today.
He added that the US-led naval coalition is “essentially unnecessary,” and that the waters adjacent to Yemen are safe for everyone except Israeli ships or those heading to Israel, due to “the unjust aggressive war on Palestine and the siege on the Gaza Strip.”
A member of the Houthi political bureau, Muhammad Al-Bukhaiti, told Al Jazeera yesterday that his group can confront any coalition formed by the United States with the aim of deploying it in the Red Sea. He added: “The Americans offered not to obstruct efforts to reach peace in Yemen in exchange for stopping our military operations in the Red Sea, and we categorically rejected that and rejected any threats.”
Change of course
In a related context, the Danish company Maersk said today that it will change the course of its ships, which were scheduled to pass through the southern Red Sea and the Gulf of Aden, to circle around Africa via the Cape of Good Hope, against the backdrop of attacks in the region.
According to a company statement, as of yesterday, Maersk had suspended the flights of about 20 ships, with half of these ships waiting east of the Gulf of Aden, while the other half were waiting south of the Suez Canal in the Red Sea or north of it in the Mediterranean.
“Routing ships through the Cape of Good Hope will deliver faster and more predictable results for our customers and their supply chains,” the company said.
This comes after the Taiwanese container shipping company Evergreen decided yesterday to temporarily stop accepting Israeli goods with immediate effect, and issued instructions to its container ships to suspend navigation through the Red Sea until further notice.
For its part, the Taiwanese shipping company Yang Ming said that it will divert its ships sailing through the Red Sea to the Cape of Good Hope during the next two weeks in light of the escalation of attacks on ships.
Marine insurance
The London marine insurance market expanded the scope of the area it considers high-risk in the Red Sea amid an escalation in attacks on commercial ships, according to a statement issued yesterday.
The directives of the Joint War Committee, which includes trade union members from the Lloyd’s Market Association and representatives from the London Insurers Market, are closely followed and influence companies’ considerations of insurance premiums and fees.
The statement added that the Joint War Committee expanded the high-risk zone to 18 degrees north from 15 degrees north previously.
The Houthi group began its pressure on Israel to bring humanitarian aid into Gaza by announcing last November 19 the seizure of the “Galaxy Leader” cargo ship owned by an Israeli businessman in the Red Sea, and taking it to the Yemeni coast.
The group has vowed on more than one occasion to target ships owned or operated by Israeli companies “in solidarity with Palestine,” against the backdrop of Israel’s war on Gaza, calling on countries to withdraw their citizens working on the crews of these ships.
