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Red Sea attacks escalate, disrupt global trade and raise inflation fears

Yemen's Houthi rebels launch anti-ship ballistic missiles in the Red Sea.

Yemen's Houthi rebels have once again targeted merchant shipping in the southern Red Sea, firing two anti-ship ballistic missiles on Tuesday. Luckily, no damage has been reported so far. However, this incident is just one among a series of attacks that have plagued the region since mid-November, amounting to approximately two dozen assaults. In the face of heightened risks, shipping giant MESC has taken the precautionary measure to suspend all shipping activities through the Red Sea after one of its vessels was recently attacked by Iranian-backed militants.

The strategic importance of the Red Sea cannot be underestimated, serving as one of the world's most critical maritime trade routes. With the ongoing attacks endangering commercial traffic, concerns are mounting about potential disruptions to the global economy. MESC had previously resumed transit through the Red Sea following the launch of Operation Prosperity Guardian, a multinational mission led by the U.S. Navy aimed at protecting commercial shipping. Unfortunately, the respite was short-lived as Houthi militants targeted one of their ships shortly thereafter.

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