Global oil prices surged and markets took a hit Wednesday as the world reacted to the rising tension between Israel and Hamas. Now, major companies that conduct business in the region, including the global shipping giant Maersk, are taking steps to stay out of the fray.
This development comes after Iran deployed a warship to the Red Sea this week in response to the sinking of three Houthi boats by American forces, intensifying trade concerns after weeks of maritime attacks.
In response to the security situation, Maersk announced its decision to reroute trade shipments around the Red Sea “until further notice” due to security incidents in December that compromised voyage safety. During this period, cargo will be rerouted around Africa.
However, this strategic move not only increases costs but also extends delivery times for various goods.
