"The Red Sea Crisis: $1 Million in Extra Costs and Weeks of Delays Disrupt Global Trade"

Attacks on container vessels in the Red Sea by Iran-backed Houthi militants have caused significant disruptions to global trade, leading to weeks of delays and an estimated $1 million in extra costs per ship for rerouting around the area. This has prompted concerns about potential consumer price rises and supply chain disruptions, with shipping companies experiencing increased fuel and insurance costs, as well as higher freight rates. While the current crisis has impacted global shipping costs, it is not as severe as the pandemic peak, and the inflation outlook will depend on factors such as the duration of the crisis and potential escalation of the Israel-Hamas conflict.