Did you think inflation was over? Yemen’s Houthi rebels have other ideas. Shipping giant Maersk has warned the Red Sea disruption could last for months. That $25 cocktail is going to feel like a bargain soon.

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Business reels from Red Sea disruption

Oil prices surged after the US and UK launched strikes against Houthi rebels in Yemen. The move is in retaliation to attacks on commercial ships in the Red Sea. It’s a crucial shipping route, which sees 12% of global trade pass through, amounting to $1 trillion of goods. 

Shipping giant Maersk has warned it could take months ($) to reopen the trading route, risking a hit to the global economy and inflationary pressures. This is because the alternative is all the way round the west coast of Africa, a much more expensive journey.

Furniture maker Ikea is among companies that have warned of disruption. It says supplies could be delayed if disruption continues. UK supermarket Tesco says shelves could be empty if the route isn’t re-opened. And Tesla is suspending most car production at its factory near Berlin from January 29 to February 11 because of a lack of components.

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