Houthis' Attacks on Shipping in the Red Sea Raises Global Economic Concerns

The Houthis' recent attacks on shipping in the Red Sea have caused significant disruptions to global economic activity and particularly affected Israel's maritime trade. Cargo traffic at Israeli ports has declined by 80%, forcing companies to reroute ships, adding two weeks to the voyage. The cost of marine insurance for Israeli-owned vessels has surged, and many foreign shipping companies might avoid stopping at Israeli ports altogether due to the risk. These impacts have led to increased expenses, which will ultimately be passed on to Israeli consumers. The economic toll on Israel is expected to be substantial, with the economy projected to shrink by 15% in the fourth quarter.