The Yemeni militia, backed by Iran, said it had sunk a Liberian-flagged cargo ship in the Red Sea. Liberia said the attack killed two crew members.

The dynamics [in shipping insurance prices] are stranger than I’ve seen before,” Baker told the Financial Times, noting how previous attacks had prompted ships to take a longer route by going around the Cape.

Yemen's Houthi rebels claimed responsibility Wednesday for sinking a second merchant vessel in as many days, marking a renewed and deadly escalation in their campaign against Red Sea shipping following a months-long lull.