FEARS OF HIGHER OIL PRICES AFTER RED SEA ATTACKS – Several firms have paused shipments through the route after vessels were attacked
Analysts have warned that attacks on commercial ships in the Red Sea risk pushing up the price of oil and other goods.
Several firms have paused shipments through the route after vessels were attacked by Houthi rebels in Yemen.
The world’s second-largest shipping line, Maersk, said on Tuesday that it will reroute some of its vessels around Africa’s Cape of Good Hope.
The disruption has led the US to launch an international naval operation to protect ships in the Red Sea route.
Countries joining the security group include the UK, Canada, France, Bahrain, Norway and Spain.
US Defence Secretary Lloyd Austin said: “The recent escalation in reckless Houthi attacks originating from Yemen threatens the free flow of commerce, endangers innocent mariners, and violates international law.”
The Red Sea is one of the world’s most important routes for oil and liquefied natural gas shipments, as well as for consumer goods. It is bookended by the Bab al-Mandab Strait – also known as the Gate of Tears – in the south and the Suez Canal in the north.
