BP becomes latest to pause Red Sea shipments as attacks continue

Missile strikes, drone attacks and hijackings have prompted shipping companies such as AP Moller-Maersk, Hapag-Lloyd, CMA-CGM and MSC to suspend all travel through the key trade route.

The Houthis are targeting ships headed for Israel or vessels which are believed to be at least partly owned by Israelis, and has threatened to continue until a full ceasefire is agreed by the Israel government in Gaza.

"The safety and security of our people and those working on our behalf is BP's priority," the company said on Monday. "We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region."

Analysts at SP Angel said the rerouting of ships on subsequent disruption will likely impact just-in-time supply chains. "Extended routes and delays raise the potential for inflationary pressures on higher rates," they said in an email.

Brent crude prices were up 2.6% at $78.56 a barrel in afternoon trade in London, while BP rose 2.2% to 467.9p.