Another ship comes under fire in Red Sea، disruption seen pushing up prices

Disruptions to Red Sea shipping caused by Houthi attacks will push up prices of consumer goods، an executive from port and freight operator DP World said on Tuesday as a missile struck another vessel in the region.

The Iran-allied Houthi militia has threatened to expand its attacks to include U.S. ships in response to American and British strikes on its sites in Yemen.

Attacks by the Houthis on ships in the region since November have impacted companies and alarmed major powers - an escalation of Israel's more than three-month-old war with Palestinian Hamas militants in Gaza. The Houthis say they are acting in solidarity with Palestinians.

The cost of goods into Europe

DP World CFO Yuvraj Narayan said he expected that disruptions would hit European consumers hardest.

"The cost of goods into Europe from Asia will be significantly higher،" Narayan told Reuters at the annual World Economic Forum meeting in Davos، Switzerland.

"European consumers will feel the pain... It will hit developed economies more than it will hit developing economies،" the Dubai-based logisGreek tics company's finance chief added.

War risk insurance premiums for shipments through the Red Sea are rising، insurance sources said on Tuesday.

A Malta-flagged، Greek-owned bulk carrier was targeted and hit by a missile while northbound in the Red Sea 76 nautical miles northwest of the Yemeni port of Saleef، a security firm and two Greek shipping ministry sources said on Tuesday.

The vessel، the Zografia، was sailing from Vietnam to Israel with 24 crew on board and was empty of cargo when attacked، one of the Greek sources said. "There were no injuries، only material damage،" the source added. It was still sailing but would probably reroute for safety checks.