EU worried Red Sea situation could spark inflation
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European Union Economy Commissioner Paolo Gentiloni expressed that despite positive news coming from the labour market, there is "increasing concerns" regarding geopolitical tensions.
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Paolo Gentiloni addresses the plenary chamber at the European Parliament in Brussels on April 28, 2021 (AP)
European Union Economy Commissioner Paolo Gentiloni warned on Monday that unrest in the Red Sea might raise energy costs and inflation in the EU.
At the EU finance ministers meeting Gentiloni expressed that despite positive news coming from the labor market, there are "increasing concerns" regarding the geopolitical tensions.
Gentiloni remarked that events in the Red Sea are not causing any obvious consequences on energy and inflation but they should be "monitored very closely because these consequences could materialize in the coming weeks."
Last week, the US military launched strikes against multiple targets in Yemen, adding that "the strikes were from fighter jets and Tomahawk missiles."
The Yemeni SABA news agency in Sanaa also reported that the American-Israeli-British aggression launched multiple airstrikes on the capital Sanaa and the provinces of Hodeidah, Saada, and Dhamar.
This was Operation Prosperity Guardian's attempt at countering the inflation of prices as Yemen targets ships, thus imposing additional costs on ships passing through the Red Sea canals as they reroute to avoid the area. However, Western support for genocide and aggression in the Middle East backfires and threatens its economic revival.
Oil prices saw an influx following the US and UK's attacks on Yemen, instigating worries about the escalation of the conflict in the oil-rich region.
The attack, backed by Australia, Canada, the Netherlands, and Bahrain, raised crude prices by more than 2% on Friday, with reports estimating that prices have surpassed $75 and could reach $80.
In November, the Yemeni resistance announced its decision to target all Israeli-linked commercial and military ships transiting the Red Sea.
They vowed to continue to do so until the genocide on the people of Gaza comes to a complete halt.
Yemeni missile strikes US container ship near Yemen coast: US Centcom
On Monday, a US-owned ship off the coast of Yemen was reportedly struck by a missile, according to information from the UK maritime security firm Ambrey.
The targeted vessel was identified as a bulk carrier flying the Marshall Islands flag, located near Aden.
The US Central Command further confirmed that a Yemeni missile struck a US container ship in the Red Sea, with no reported casualties, according to the US military.
On Jan. 15 at approximately 4 p.m. (Sanaa time), Iranian-backed Houthi militants fired an anti-ship ballistic missile from Houthi-controlled areas of Yemen and struck the M/V Gibraltar Eagle, a Marshall Islands-flagged, U.S.-owned and operated container ship. The ship has… pic.twitter.com/gixEMaUiVT
— U.S. Central Command (@CENTCOM) January 15, 2024
UKMTO WARNING 009/JAN/2024 - UPDATE 001
— United Kingdom Maritime Trade Operations (UKMTO) (@UK_MTO) January 15, 2024
ATTACK
Warnings - 2024 (https://t.co/5An1YH0JyE)#MaritimeSecurity #MarSec pic.twitter.com/U3Y3S3qx9V
