The Houthis (who pretty much control Yemen, at the ire of Saudi Arabia and the West) have been attacking ships in the Red Sea that are in any way associated with Israel as a way to support/retaliate for Palestine. The Houthis have been genocided recently and are very willing to do anything it takes to prevent genocide. So far Western ships have successfully repelled all attacks (I think) including many drones, missiles and ballistic missiles without actually attacking back. The UN Security Council vote to attack back got an 'abstain' from Russia, China and others due to the fact that they refused to explain why the Houthis were doing this, or which particular ships they were targetting, and the wording explained the Houthis actions as the Houthis trying to gain power.

It’s a perfect choke point to attack shipping into/out of the Suez.

Will mainly affect euro-Asian trade.

If insurance companies stop covering the ships they’ll have to sail around Africa the old fashioned way instead