The recent escalation in the Red Sea, marked by the Houthi rebels’ attacks on international shipping routes, including targeting cargo ships headed to Israel, has thrust the region into a precarious state. Either way, it will have significant economic implications. These attacks compelled global shipping giants such as Maersk, Hapag-Lloyd, CMA, and CGM to suspend shipments through the Red Sea, with oil conglomerate BP following suit. These drones, though cheaply made, have proven effective in disrupting major shipping routes and causing significant security concerns. Disruptions in the Red Sea can lead to increased fuel prices, affecting everything from transportation costs to manufacturing, further applying pressure on an inflation-ridden global economy.
