Danish shipping giant Maersk has announced a complete halt on all transits through the Red Sea and Gulf of Aden until further notice after one of its vessels, the Maersk Hangzhou, was attacked by Houthi militants over the weekend, CNBC reports.
This decision extends a 48-hour pause initially implemented on Sunday following the attack. The container ship was attacked by four small boats crewed by Houthi militants, leading to a distress call and a US Navy response. US Navy helicopters fired on the militants, sinking three boats and killing the crews.
The situation in the region has raised concerns about disruptions to global trade, as about 12% of global trade and approximately 3 million barrels of crude oil pass through the Red Sea each day. Oil prices experienced volatility in response to the Red Sea tensions, initially jumping over 2% before later giving up those gains.
Maersk stated that an investigation into the incident is ongoing, and cargo movements through the area will remain paused as the situation is further assessed.
