(Bloomberg) -- Houthi rebels attacked a container ship transiting the Red Sea as the conflict in the region escalates, prompting several vessels to avoid the area.
The MSC United VIII was attacked on Tuesday while en route to Pakistan from Saudi Arabia, MSC Mediterranean Shipping Company confirmed in a statement. All crew are safe and no injuries have been reported. The company is carrying out an assessment of damages and will avoid using the Suez Canal, diverting vessels to sail on a longer route via the Cape of Good Hope instead.
Read More: Houthi Attacks and US Strikes Heighten Risk of Wider Mideast War
Houthi attacks on merchant ships have caused widespread avoidance of the southern Red Sea by the merchant fleet moving everything from manufactured goods and grains to oil and gas. The US government has worked to thwart the assaults, while the Yemeni Houthi forces vowed to continue. The extra costs and delays pose risks to the global economy, just as inflation looked set to be cooling.
Although A.P. Moller-Maersk A/S, the world's second-largest container line, said it's preparing to resume shipping through the Red Sea, many other shippers continue to avoid the route in favor of safer, albeit longer, journeys.
Earlier, Iran-backed Houthi rebels claimed responsibility for a missile attack on the ship and vowed to continue to attack Israeli ships and vessels sailing to Israel. US Central Command said American military shot down several drones and missiles in the southern Red Sea Tuesday.
Oil prices maintained gains after news of the attack broke. Prices of West Texas Intermediate remained above $75 a barrel.
(Adds US military response in penultimate paragraph.)
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