Qatar Halts Shipment of Liquefied Gas via Red Sea

Following rising tensions in the region and attacks by Western forces led by the United States against Houthi militants supported by the Islamic Republic in Yemen, Qatar's state energy company, one of the largest liquefied gas exporters in the world, stopped shipments through the Red Sea on Monday, January 15. Reuters reported, citing a senior source, that the company emphasized continued production but ordered at least four large tankers not to pass through the Red Sea. The senior official stated, "This pause is for receiving security recommendations; if the Red Sea remains unsafe, we will take the Cape [of Good Hope] route." Choosing this route could increase the maritime travel time from Qatar to Europe, which usually takes 18 days, by 9 days. Data from a ship tracking company named 'LSEG' indicates that the tankers Algharia, Alhuwaila, and Alnu'man, which loaded their liquefied gas at the Ras Laffan port and were heading towards the Suez Canal, were stopped in Oman on Sunday. The tanker Alrakiah, which was returning to Qatar, also stopped somewhere along the route on Saturday. The Red Sea connects to the Mediterranean Sea via the Suez Canal and is the shortest shipping route between Asia and Europe. About 12% of global shipping traffic passes through this canal. In the early hours of Monday, the price of liquefied gas at the 'TTF' center in the Netherlands dropped by 1.20 euros. The spot price of liquefied gas in Asia also reached its lowest level in seven months, at $10.10 per million British thermal units, on Friday, January 12, due to adequate storage levels in Europe and Northeast Asia. Despite escalating tensions in the Middle East, oil prices fell on Monday after a 2% increase last week, as oil supply has not yet been affected by these conflicts. The U.S. military announced late on Sunday, January 14, that it had intercepted a cruise missile fired by the Houthis towards an American destroyer, with no casualties or damages reported. On Monday, Suzuki, a car manufacturer, also announced that it would halt production at its 'Ostragam' plant in Hungary for one week due to delays in the arrival of Japanese-made engines caused by attacks in the Red Sea. Since the outbreak of the war between Israel and Hamas following a terrorist attack by Palestinian militants on Israel on October 7, Houthi militants have carried out multiple attacks on ships in the Red Sea, disrupting global trade. Major Western powers have repeatedly warned the Houthis about these attacks. The continuation of Houthi attacks and increasing concerns about disruptions to global shipping ultimately led U.S. and British military forces to target dozens of the militants' positions in Yemen starting January 12. These attacks followed a United Nations Security Council resolution calling on the Houthis to end their "shameless attacks" against this strategic trade waterway. The Houthis have stated that they will continue to target vessels associated with Israel in the Red Sea and will respond decisively to Western forces' attacks. Britain, a U.S. ally in these attacks, has also stated that while it does not wish to engage in conflict in the Red Sea, it is committed to supporting the right to free navigation. Biden's renewed warning to the Houthis and the Islamic Republic: If you continue, more attacks are on the way. Egypt and China emphasized the priority of safety and security in Red Sea shipping. David Cameron warned the Houthis about the threat to free navigation in the Red Sea. Biden: We sent a "private message" to Iran regarding the Houthis' attacks. The Indian Foreign Minister is heading to Tehran following U.S. and British attacks against the Houthis. Britain's warning to the Islamic Republic about the "thugs" of the Houthis: The world's patience is running out. Reaction to the Houthis' insistence on "destructive" behavior and "threats of retaliation"; the U.S. targeted this group's positions once again.