Houthi militants, backed by Iran, have launched new attacks on Red Sea shipping lanes disrupting international commerce.

Major shipping companies such as Shell, BP, and Qatar Energy have halted Red Sea shipments indefinitely due to potential attack threats.

The attacks have led to production suspensions or delays for companies like Suzuki, Volvo, and Tesla, sparking concerns about potential price pressures and inflation in Europe.

In response, the US and UK have conducted airstrikes on Houthi targets in Yemen and seized Iranian-made missile parts.

The current situation threatens maritime transportation and is expected to increase consumer goods prices, thereby raising inflation concerns.

The US-led coalition to safeguard commercial traffic is considered weak, adding pressure to the Biden administration to stop the Houthis without escalating the situation.

The Pentagon is preparing for larger retaliatory attacks and planning escalating responses.