“The Houthis have launched repeated drone and missile attacks against international commercial shipping in the Red Sea and the Bab al-Mandab Strait since mid-November.” They claim that they are acting in solidarity with Palestinians as Israel wages war on Hamas. 

According to the United Nations Conference on Trade and Development (Unctad), the attacks have suspended passage of the world’s five largest container lines - 65% of global shipping capacity - through the Suez Canal. Along with the drop in traffic by about 39%, freight tonnage has also dropped by 45%. 

Such results triggered an increase in shipping times and costs. According to the World Bank, the global economy is experiencing its slowest half-decade of growth in 30 years. Due to the higher shipping costs, consumer goods prices could be pressured, increasing global inflation.

#Economy #Economy news #Red sea #Houthis #Palestine #Israel #Hamas #Yemen #War 

Sadie Kim (rkim2025@chadwickschool.org)