Remember the supply chain crisis caused by the Covid virus? Remember the problems parents had buying Christmas gifts for their children? We may be headed right back there only for a different reason.
On Sunday I posted an article about terrorism interrupting the flow of shipping through the Red Sea (article here). The article stated that because of a Houthis’ attack on one of their vessels, A.P. Moller-Maersk A/S is ‘pausing’ their ships heading for the southern entrance of the Red Sea.
On Monday, The BBC reported the following:
Oil giant BP has announced it is pausing all shipments of oil through the Red Sea after recent attacks on vessels by Houthi rebels.
The firm blamed the “deteriorating security situation” in the region as Iran-backed Houthis target ships they believe are bound for Israel.
Many freight firms have suspended journeys as the attacks continue.
BP said it would keep its “precautionary pause under ongoing review” and monitor the region.
Analysts suggested that if other large oil firms follow suit, oil prices could rise. Brent crude, the international benchmark foroil prices, increased to $78.44 per barrel.
“Though if more shipping companies divert their traffic, and if the disruption lasts more than a week or two, prices are likely to climb further.”
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.
This is an international matter. The world needs to understand that Iran is funding the Houthis. Iran is also funding Hamas. Iran is also funding Hezbollah. There seems to be a pattern here. It’s time to put international sanctions back on Iranian oil and enforce them. One major move that the international community can make to slow down terrorism is to defund Iran. If they are not willing to unite to do that, look behind the scenes to see who benefits from the terrorism.