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New Maritime Route Impacts Israeli Economy: Transport Costs Set to Surge

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Rizwan Shah
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New Maritime Route Impacts Israeli Economy: Transport Costs Set to Surge

Repercussions echo across the Mideast as a new maritime route is established for Israeli-bound vessels, heralding heightened transport costs and subsequent inflation for consumers in Israel. The ripple effects of this development will be felt by the general populace as the prices of imported goods surge, due to additional costs incurred by this rerouting.

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A Tumultuous Morn at Sea

The birth of this new route traces back to an incident where commercial ships were attacked in the Red Sea by drones and missiles. The assault, lasting several hours, was claimed by Yemen's Houthi rebels, marking a potential escalation in maritime attacks linked to the Israel-Hamas conflict. The USS Carney, a US warship, retaliated in self-defense as the attack began in Sanaa, Yemen, and stretched for nearly five hours.

Yemen's Houthi Rebels Claim Responsibility

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Responsibility for the attack was claimed by Houthi military spokesman Brig Gen Yahya Saree, who declared the strikes targeted Israeli ships in the Bab el Mandeb Strait. The Yemeni armed forces have vowed to impede Israeli ships from navigating the Red Sea and Gulf of Aden until Israeli aggression against Gaza ceases. The Houthi forces carried out operations against two Israeli ships in the Bab al-Mandab Strait, deploying a missile at one and targeting the second with a drone.

Escalating Tensions in the Red Sea

The latest incidents have ignited tensions in the Red Sea and surrounding waters. Last month, Iran-backed Houthi rebels seized an Israeli-linked cargo vessel, the Galaxy Leader, which added fuel to the fire. The spike in maritime incidents has led G7 foreign ministers to urge the rebels to desist threats to international shipping and to release the Galaxy Leader. The strikes on the commercial ship near the strategic maritime route of Bab el-Mandeb could potentially escalate tensions and pose a threat to international shipping in the region.

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