Houthi Pledges Safe Passage for China and Russia Amid Red Sea Ship Attacks
Houthi attacks on ships in the Red Sea are threatening Israel's economy, causing an 85% drop in shipping activity at the Port of Eilat and leading to potential furloughs. The attacks have disrupted global shipping routes, with major carriers diverting vessels and imposing surcharges on shipments to Israel. This has implications for imports from East Asia, including electric vehicles from China, and could lead to rising prices for consumers. The broader economic impacts of the Red Sea strikes could also contribute to regional tensions and pressure on Israel to wind down its war in Gaza. U.S. airstrikes against the Houthis continue, while tensions in the Middle East appear to be spreading.