From Due Media:

1. Tensions in the Red Sea have escalated due to U.S. naval intervention against 3 Iranian-backed militant ships. The Houthi militant group, supported by Iran, has made 23 hijack attempts since November, instilling fear and disrupting shipping routes that facilitate approximately 12% of global trade.

2. As a result of threats from hijackers, many commercial vessels are avoiding the Red Sea, opting for a 15,000-mile detour, causing trade delays, increased costs, and potential price impacts on goods and services, negatively affecting the economy.

3. Iran has responded by sending a warship to monitor events within the Red Sea, further escalating tensions that directly impact oil prices and broader market stability.

4. Investors are urged to protect their portfolios amidst these rising tensions by diversifying investments, incorporating hedges, options, or less volatile assets, and building defenses against potential market disruptions tied to geopolitical conflicts.



Read more: Red Sea Tensions Impact Trade, Shipping, and Investments