Houthi Attacks in Red Sea Threaten Oil and Gas Prices

Ongoing missile and drone attacks by Yemen's Houthi militants on ships in the Red Sea have led major shippers like BP and Frontline to reroute vessels, raising concerns about potential trade disruptions and higher oil and gas prices. The diversion of ships adds up to two weeks' transport time to each shipment, and experts warn that extended shutdowns in the area could drive up energy costs. The situation has prompted companies to factor in additional costs such as higher insurance and longer distances, potentially pushing oil prices upward. There are also concerns about a potential escalation and a shutdown of the Strait of Hormuz, creating a second major choke point for global oil flow. Defense Secretary Lloyd Austin has announced the creation of an international mission to counter Houthi attacks, while a Houthi official stated that attacks will continue as long as Israel is involved in the Gaza Strip. The impact on the American consumer will depend on the duration of the disruption.