There are growing fears that an extended period of disruption to supplies of imported goods will raise costs for customers in the weeks and months ahead.

Shell has refused to comment on a report that it has suspended shipments through the Red Sea amid attacks on freight by Iran-linked Houthi rebels.

The oil and gas major was said, by the Wall Street Journal (WSJ), to have taken the decision last week to avoid the short route to Europe via the Suez Canal indefinitely.

The paper, citing a number of sources, said there was concern within the company that US and UK strikes on Houthi targets in Yemen could be met with further escalation, placing crews and vessels at a greater risk.

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    011 months ago

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    Shell has refused to comment on a report that it has suspended shipments through the Red Sea amid attacks on freight by Iran-linked Houthi rebels.

    The oil and gas major was said, by the Wall Street Journal (WSJ), to have taken the decision last week to avoid the short route to Europe via the Suez Canal indefinitely.

    The paper, citing a number of sources, said there was concern within the company that US and UK strikes on Houthi targets in Yemen could be met with further escalation, placing crews and vessels at a greater risk.

    Around 12% of global trade passes through the Red Sea and there are growing fears that an extended period of disruption is a threat to easing inflation - in Europe in particular.

    The consequences of the additional costs are yet to be felt by consumers but they are, according to industry figures, set to be passed on down the supply chain in the coming weeks and months.

    The chief financial officer of ports and freight operator DP World, Yuvraj Narayan, told Reuters the disruption would hit European consumers hardest.


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