British Finance Minister Jeremy Hunt confirmed on Saturday that the attacks on ships in the Red Sea could have an impact on the British economy due to rising prices.
Responding to a question about whether the attacks by the Houthi group in Yemen, allied with Iran, could lead to price hikes in Britain, Hunt told the BBC, “It may have an impact and we’ll watch it very, very carefully.”
The attacks in the Red Sea have forced international shipping companies to reroute shipments that usually pass through the Bab al-Mandab Strait, diverting them around the Cape of Good Hope, which has increased both time and costs.
The likelihood of escalation also rose with a direct military confrontation occurring last Sunday between the United States and the Houthis.
The US Navy sunk three Houthi boats and killed their crews after the group attacked a vessel belonging to the Danish company Maersk.
Additionally, US officials revealed plans for targeted strikes against Houthi centers that include sites for launching boats used in naval attacks.
This comes in conjunction with the establishment of the “Prosperity Support” alliance announced by Washington, joined by a group of countries to protect navigation in the Red Sea from attacks by the Houthi group, supported by Iran.
The United States has also deployed three naval pieces in the region, including the destroyer USS Mason and the aircraft carrier USS Eisenhower, from which the helicopter that attacked the Houthis was launched.
Britain has the destroyer “Diamond” belonging to the Royal Navy, which has joined the new alliance, while France has the multi-mission frigate “Languedoc.”
