Red Sea airstrikes stoke crude supply concerns and boosts Brent

In a volatile escalation of the Middle Eastern conflict, militant groups are launching unprecedented airstrikes and drone attacks on ships bound for Isreal in the Red Sea.

PHOTO: Flags of Israel and Palestine. Getty Images

It has become risky to sail through the Red Sea as ships believed to to be bound for Israel are being hit by airstrikes and drone attacks.

This has raised concerns over crude oil supply disruptions in the region and has pushed the price of Brent crude higher.

Container shipping line Meditarranean Shipping Company (MSC) said it would avoid the Red Sea after the Yemen-based Houthi militant group attacked one of its vessels on Friday, according to Reuters. The Palatium III was attacked in the Bab al-Mandab Strait in the southern part of the Red Sea. Avoiding the Red Sea would mean it cannot use the Suez Canal shorcut to sail the East-West trade route.

Several shipping firms, including French container line CMA CGM and Danish shipping company A.P. Moller-Maersk, said they were suspending shipments across the Red Sea over the weekend.

On Saturday, the Houthis allegedly launched a drone attack on the southern Israeli city of Eilat, about 400 km from the Red Sea, Reuters reported.

“Attacks on ships in the Red Sea and Israel widening its Gaza ground offensive move oil higher,” said Price Futures Group’s senior market analyst Phil Flynn.

The Bab al-Mandab Strait is a critical route for global maritime trade. It serves as a key passage for Gulf shipments destined for the Mediterranean through either the Suez Canal or the Sumed pipeline.

Earlier attacks

Earlier in December, a Houthi airstrike struck a Norwegian chemical tanker in the Red Sea, causing a fire and damage to the vessel, Reuters reported, citing two US defence officials.

Last month, the Houthis launched ballistic missiles at Israel from a base in the Yemeni capital Sanaa. This was in retaliation to Israel refusing a ceasefire in Gaza, Reuters cited Houthi spokesperson Yahya Saree saying in a televised statement.

The attack posed a direct threat to the region's major oil producer, Saudi Arabia. The shortest flight route for any drone or missile launched from Yemen to Israel crosses over the western part of Saudi Arabia, which is closer to the Red Sea.

The US military confirmed last month that the Houthi militant group had launched drone attacks on three commercial vessels in the southern part of the Red Sea after Israel rebuked the ceasefire, according to Reuters.

By Aparupa Mazumder 

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