The announcement by the United States of America of a 10-nation maritime task force to ensure the safe transit of ships through the Red Sea points to growing concerns that Israel’s war on Gaza threatens to spill over into a conflict that directly impacts the global economy. The Iran-backed Houthi rebels in Yemen have been using missiles and drones to target ships with any real or perceived Israeli link, insisting that they will only stop if Israel agrees to a ceasefire in Gaza. The Houthis are a part of the so-called Axis of Resistance against Israel, which includes the Palestinian armed group, Hamas, the Lebanon-based Hezbollah and other Iran-supported militias. While the range of Houthi missiles does not allow them to seriously target Israeli territory, the attacks — including the seizure of a ship last month — pose an economic threat that the world cannot ignore. The Red Sea and the Suez Canal, which the sea leads to, account for 30% of the world’s container ship traffic. The Bab el-Mandeb, a narrow strait in the Red Sea that is particularly vulnerable to Houthi attacks, alone is responsible for 12% of the world’s oil traffic; 8% of global liquefied natural gas also passes through the strait.

Any disruption in this trade is bound to lead to a spike in the cost of crude, which, in turn, could set in motion inflationary trends around the world at a time when many nations are already grappling with price rise. Those are concerns that also found their way into the conversation that the Indian prime minister, Narendra Modi, had with his Israeli counterpart, Benjamin Netanyahu, on Tuesday. So far, the signs are ominous. Oil prices have started rising and, despite the maritime coalition pulled together by the US, shipping giants have decided to reroute their vessels around Africa, adding significant costs and delays. There is also a graver danger. So far, the Houthis have been careful to avoid striking the warships of the US and its allies. The US, in turn, has not fired missiles towards Yemen. But a single miscalculation — or a misdirected missile that strikes a navy ship — could change that, sparking a broader war. Such a scenario must be avoided at all costs. For that, Israel, Hamas and their respective allies need to return to active negotiations towards a ceasefire, before an already desperate humanitarian catastrophe also grows into an economic crisis.