The UK and international allies are examining ways to bolster maritime security in the Red Sea after oil giant BP paused all of its tanker journeys due to attacks from militants in Yemen.
Downing Street said it was talking to the shipping industry about the threat to vessels and providing security advice.
BP said it has witnessed a “deteriorating security situation” for its shipments.
Iranian-backed Houthi militants have stepped up attacks on vessels in the Red Sea in recent days.
The rebels are understood to be targeting ships using the Bab el-Mandeb Strait, with the pro-Hamas group seeking to disrupt ships set for Israel.
On Monday, BP said: “In our trading & shipping business, as in all BP businesses, the safety and security of our people and those working on our behalf is BP’s priority.
“In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea.
“We will keep this precautionary pause under ongoing review, subject to circumstances as they evolve in the region.”
A number of shipping firms, such Maersk, had already paused container shipments through the area due to the surge in attacks.
The Prime Minister’s official spokesman said: “Obviously we are speaking to the sector. We’re speaking to our partners, both internationally and in the region about how we can further strengthen maritime security, particularly in the context of the recent attacks.
“You’ll understand I can’t get into the detail of what that will or will not entail.
“On the specifics, this is a commercial decision for BP.
“We are providing security advice to the shipping sector as necessary. But it remains for individual operators to decide on whether to continue their activity in light of the advice we provide.”
The UK has already bolstered its naval presence in the region, with the deployment of HMS Diamond.
HMS Diamond has shot down a suspected attack drone targeting merchant shipping in the Red Sea – destroying the target with a Sea Viper missile. pic.twitter.com/x68zX4WtWi
— Rt Hon Grant Shapps MP (@grantshapps) December 16, 2023
On Saturday, it was revealed the Type 45 destroyer shot down a suspected attack drone which was targeting merchant shipping in the Red Sea.
Danish firm Maersk said it would suspend its activity in the region following a near miss involving its Maersk Gibraltar ship on Thursday.
Guy Platten, secretary general of the International Chamber of Shipping, said a “large number of companies are now actively considering rerouting” after the “flagrant breach of international law” in the Red Sea.
He said shipping lines having to take longer journeys around the Cape of Good Hope, at the tip of south-west Africa, had “every potential” to be disruptive for global supply chains, in an echo of the delays experienced when the Suez Canal was blocked in 2021.
In March 2021, the Panama-flagged Ever Given, a colossal container ship, crashed into a bank on a single-lane stretch of the canal, blocking the waterway for six days and disrupting global trade.
Mr Platten, asked about how much additional time having to avoid the Red Sea could add on to Asia to Europe journeys by sea, told BBC Radio 4’s PM programme: “It depends on the type of ship and the trade but typically, it adds between six and 14 days to a voyage, about 9,000 kilometres.
“So it does add delay to the supply chain as well. You will see some implications of that as the weeks go on, as we did when the Ever Given ran aground in the Suez Canal.”
He added: “I think there is every potential for it to be disruptive.
“This (situation) is due to security implications by the Houthis in the Red Sea but it has the same effect in that ships are going to have to divert elsewhere, so you will see this disruption.”
Oil and gas prices increased on Monday due to the potential disruption caused the shipping issues.
The price of a barrel of Brent crude oil was up by 3% to 78.88 US dollars (£62.33) as markets were closing in London.
The shipping route is a key area for global trade, particularly for the transport of oil, grain and consumer goods from east Asia.