Attacks on commercial ships in Red Sea risk pushing up oil price

LONDON: Attacks on commercial ships in the Red Sea risk pushing up the price of oil and other goods, analysts have warned, according to a media report.

Several firms have paused shipments through the route after vessels were attacked by Houthi rebels in Yemen, BBC reported.

The world's second largest shipping line, Maersk, said on Tuesday that it would reroute some of its vessels around Africa's Cape of Good Hope, the report said.

The disruption has led the US to launch an international naval operation to protect ships in the Red Sea route.

Countries joining the security action - named 'Operation Prosperity Guardian' - include the UK, Canada, France, Bahrain, Norway and Spain.

Meanwhile, US Defence Secretary Lloyd Austin held a virtual meeting with ministers from more than 40 countries on Tuesday, and called on more nations to contribute to the security efforts.

"These reckless Houthi attacks are a serious international problem and they demand a firm international response," he said.

The UK's Ministry of Defence said the Royal Navy destroyer HMS Diamond would join the new task force, with the security situation "deteriorating", BBC reported.

The Red Sea is one of the world's most important routes for oil and liquefied natural gas shipments, as well as for consumer goods. It is bookended by the Bab al-Mandab Strait - also known as the Gate of Tears - in the south near the coast of Yemen and the Suez Canal in the north.

Houthis have declared their backing for Hamas in the latter's war with Israel and the rebels based in Yemen said they were targeting vessels which they believe are heading for Israel.

However, some firms, such as Investor Chemical Tankers, whose Swan Atlantic vessel was attacked on Monday, said that its ship had no links to Israel, BBC reported.

Despite the launch of the international operation to ensure safe passage through the Red Sea, Maersk said it was not clear when it would resume journeys along the route.