Oil prices (CL=F, BZ=F) have moved higher following news that producer BP (BP) will temporarily halt shipments through the Red Sea after reported attacks on vessels delivering on this route. Analysts estimate 12-15% of the global oil supply moves through this passage from the Middle East, meaning any prolonged closure could impact availability in relevant markets.

Yahoo Finance Ines Ferré breaks down the details and what these pressures will mean for oil and natural gas prices (NG=F).

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Video Transcript

- Well, some of the biggest moves in the market today are in the commodity space. Ines Ferre is here with the details on that story. Hi, Ines.

Hi, Julie. And what we've seen today is a bump for WTI for crude oil. Let's take a look at the chart so you can see where we're at. With WTI and crude both jumping more than 2% during today's session. This is after British oil giant, BP, said that it was pausing ship shipments via the Red Sea after Houthi rebels were attacking ships. This was a precautionary pause.

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But look, several shipping companies have been pausing their shipments, including Evergreen, that's a global container shipping company. Now, the Red Sea, that's connected to the Mediterranean Sea by the Suez Canal. Anywhere between 12 and 15% of oil is transported via the Suez Canal, so it is a very important area that's connecting-- that is a shipping route connecting Europe to Asia.

One analyst saying that if you have one week of meaningful capacity rerouting, could have a ripple effect for several months ahead when it comes to oil. And that's why we saw the bump up in oil prices today.

Now, over the last six days, we have seen oil rising higher. Part of that has to do with the weaker dollar, and also the Federal Reserve hinting, perhaps, at rate cuts next year. So you saw a little bit of a rally when it came to crude prices. But overall, if we are taking a look at a year-to-date chart, we are seeing that year to date, crude is in negative territory.

One other note, also guys, is we have been also watching natural gas prices. And natural gas prices, which have been on a decline over the last couple of months, well, those, today, saw a bump up. And that is because of the expectation of some colder weather ahead, guys.

- Ines Ferre. Thank you so much, Ines, for that. Appreciate it.