Overview

• Since November, the Houthis have intensified their attacks on global shipping in the Red Sea, prompting a series of U.S. and UK military responses that have yet to curb the group's activities.
• The ongoing conflict has led to a significant rerouting of ships, avoiding the Suez Canal and causing delays and increased costs for global trade.
• Businesses worldwide are adapting to the crisis by seeking alternative transportation methods and suppliers, with some sectors, like the automotive industry, experiencing production delays.
• The U.S. has complemented its military strikes with sanctions and other measures against the Houthis, but these efforts have not stopped the group's attacks.
• The crisis has not yet had a dramatic impact on global economic growth or inflation, but continued disruptions could lead to more significant consequences.