Government fears UK economy could shrink in face of attacks on shipping in Red Sea

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The government fears the British economy could shrink in the face of ongoing attacks on shipping in the Red Sea. On Thursday night, the US and the UK launched scores of airstrikes against targets linked to the Iran-backed Houthi rebel group in Yemen, which has targeted dozens of international cargo ships in the Red Sea, a major artery of world commerce, since the start of Israel’s war with Hamas in Gaza. About 15 per cent of global seaborne trade passes through the Red Sea, according to the White House, including eight per cent of global grain, 12 per cent of seaborne oil, and eight per cent of the world’s liquified natural gas. The US electric car maker said: “The armed conflicts in the Red Sea and the associated shifts in transport routes between Europe and Asia via the Cape of Good Hope are also having an impact on production in Gruenheide.” Tesco boss Ken Murphy said earlier this week that the disruption “could inflate the cost of some items but we just don't know at the minute”.