Oil giant BP is fighting to secure its future as the US government has launched a criminal and civil investigation into the Gulf of Mexico oil spill.
US Attorney General Eric Holder announced the probe into the disaster after the oil giant suffered its biggest one-day shares fall for 18 years.
Shares plunged by as much as 17 per cent at one stage on Tuesday, before settling around 13 per cent lower. That wiped £12 billion off its market value.
The stock tumbled into the red after BP’s latest attempts to block the leaking oil well proved unsuccessful and amid mounting fears over the ultimate financial toll on the company.
Launching the investigation which will involve the FBI, Mr Holder said: “We will closely examine the actions of those involved in the spill. If we find evidence of illegal behaviour, we will be extremely forceful in our response.”
Though he would not specify which companies or individuals might be targeted, BP’s actions are expected to come under intense scrutiny.
One analyst said the relentless oil leak – the worst in US history – has the potential to “break BP” if the well is not brought under control soon.
BP’s “top kill” operation to cap the well with mud and other debris proved unsuccessful over the weekend and the company is now working on using robot submarines in the latest move to stem the flow of oil.
ITN