From Fortune:

Shipping companies have confirmed they are avoiding the Red Sea route following an attack by Houthi rebels. A.P. Moller-Maersk was the first to stop ships and is now rerouting them until further notice. Shares have gained as a result, with other companies following suit as attacks continue.

The re-routing could impact global container cargo shipments as the Suez Canal handles nearly a third of all shipments between Europe and Asia. Prolonged disruptions could lead to increased shipping and delivery costs, but analysts don’t expect the scale of disruption to be like that seen during COVID-19.

Houthi militants attacked vessels with links to Israel in response to the conflict in Gaza, prompting the U.S. and its allies to kick off Operation Prosperity Guardian. Warships are now patrolling the area, and the U.S. has issued a warning to Houthi rebels on possible military action if they don’t stop their attacks.



Read more: Maersk, MSC and BP halt Red Sea shipments after Houthi rebels attacks