Red Sea on Red Alert: Visualising the Crisis and Its Impact
Vital Shipping Lane
The Red Sea connects the Suez Canal to the Indian Ocean and carries about 12% of global trade, including 30% of container traffic.
Bab-el-Mandeb Strait
This 20-mile-wide strait between Djibouti and Yemen is the southern entrance to the Red Sea and one of the worlds busiest shipping channels.
Houthis in Red Sea
The Iranian-backed group has launched missiles and drones at vessels passing through the Bab-el-Mandeb strait, disrupting global trade.
Threats to Global Economy
The attacks are a threat to the global economy. Rising insurance costs and shipping delays could lead to higher prices for consumers worldwide.
Surge in Oil Price
If the attacks continue, oil companies may halt shipments through the Red Sea, leading to higher energy costs.
Shipping Companies' Dilemma
They can either risk sailing through the Red Sea and paying higher insurance costs or divert their vessels to longer routes.
Global Supply Chain Disruption
The Atlantic Council warns that the attacks could create a strong headwind to the global economy.
Increased Insurance Costs
If inflation rises due to the disruption in the Red Sea, central banks may need to raise interest rates to combat it.
International Response
Coalition formed by US, UK, and France defends shipping, though the Houthis vow to resist any US-led deployment.
The Houthis Against US-led Coalition
The Houthis say they will confront any US-led coalition. Mohammed al-Bukhaiti, a member of the Houthi leadership, has threatened to attack any coalition formed by the United States to protect shipping in the Red Sea.
Situation Still Unfolding
It is too early to say what the long-term impact of the attacks will be, but they are a serious threat to the global economy.