Recent attacks by Yemen's Iran-aligned Houthis on ships in the Red Sea have led to disruptions in international commerce. A U.S.-led international force is patrolling waters near Yemen, prompting major shippers like Hapag Lloyd, MSC, and Maersk, along with oil companies BP and Frontline, to avoid the Red Sea route. Some vessels have turned off tracking systems, while others with armed guards navigate the waterway. Denmark's Maersk has halted container shipments through the Red Sea after a "near-miss incident." The impact on global trade depends on the crisis's duration, with potential immediate burdens like increased insurance premiums and longer routes. The Houthis' involvement in attacking vital shipping lanes amid the Israel-Hamas conflict adds complexity to the situation. Despite disruptions, the Red Sea's impact on crude and LNG prices is considered manageable, with vessels being redirected. Some industries may experience slightly longer delivery times and shipping fees, but overall business impact is expected to be limited.

SOURCE:GOOGLE