Recent attacks by Yemen's Houthi group on commercial ships in the southern Red Sea have led several shipping companies to divert vessels, avoiding the Suez Canal. The Houthi attacks, aimed at supporting Palestinians amid the Israel-Hamas conflict, have increased costs and time for maritime journeys, impacting oil prices and war risk insurance premiums. The Suez Canal, a crucial route between Asia and Europe, handles approximately 9% of global oil demand and 4% of LNG imports. Ship rerouting via the Cape of Good Hope has surged, affecting canal navigation and prompting major freight firms, including MSC and BP, to temporarily avoid the Suez Canal. The Suez Canal, operational since 1869, is a vital maritime route connecting the Mediterranean and Red Seas, playing a pivotal role in global trade.

SOURCE:GOOGLE