Maersk Suspends Red Sea Shipments Over Yemeni Rebel Attacks, Fueling Inflation Fears and Upending Trade
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Maersk has suspended shipments through the Red Sea due to attacks by Iran-backed Houthi rebels, causing supply chain disruptions.
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This could drive up oil prices and shipping costs, keeping inflation higher for longer and posing challenges for the Bank of England.
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Alternative shipping routes around Africa are more expensive due to higher fuel costs and carbon taxes.
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Higher oil prices could delay the Bank of England's rate cut plans and make it harder for the UK government to cut taxes this spring.
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The tensions have boosted UK defence stocks, with the benchmark aerospace and defence index hitting a record high.