What is the Red Sea crisis? Does it affect India?
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Major shipping companies like Maersk and Hapag-Lloyd have temporarily halted their Red Sea routes due to increased Houthi rebel attacks in the Bab-el-Mandeb strait. This has caused a spike in shipping costs from Asia to Europe and could potentially lead to another inflation shock for the global economy. A key element in this route is the Suez Canal, which gives passage to about 12% of global trade and connects oil-supplying Gulf states to their customers in Europe and America.