"Red Sea Turmoil Escalates as Shipping Costs Surge Amid Persistent Attacks"

Yemeni Houthi rebels' attacks on merchant ships in the Red Sea have led to a significant disruption in world trade, with shipping costs soaring by 170% as major lines reroute around South Africa to avoid the Gulf of Aden. This shift has caused freight rates to nearly triple and has resulted in a 25% reduction in commercial traffic through the Suez Canal, impacting global economic stability and threatening further inflationary pressures. Despite the challenges, experts believe the inflationary impact will be limited if the disruption is short-lived.