Recently, Yemen-based Houthi militants attacked commercial shipping vessels traveling through the Suez Canal and the Red Sea, in response to the ongoing war between Israel and Hamas. Over 10% of world trade happens through that region, including oil shipments (CL=F, BZ=F).

Breakwave Advisors Managing Partner John Kartsonas joins Yahoo Finance to talk about what could happen to trade and foreign policy as a result of continued conflict in the region.

"A lot of Russian oil comes down from the Suez Canal all the way to Asia and India. The expectation is that these ships won't be affected by that and the other way around," Kartsonas explains. "I think it depends a lot on what the purpose is and which country's ships they're targeting. So far it has been, I would say, isolated. Even if in the headlines it's a big deal, I don't think that so far it's caused any significant disruption..."

Austin visits Israel and warns Iran on Houthis

Mounting attacks by the Iran-aligned Yemeni Houthi militant group on ships are disrupting maritime trade as leading global freight firms reroute around the Cape of Good Hope to avoid the Suez Canal.

The Red Sea attacks have showed the ability of Middle Eastern paramilitary forces backed by Iran to upset global trade at a time when Tehran and its proxies are positioning themselves against the United States and Israel.

In a joint statement with Israeli Prime Minister Benjamin Netanyahu in Tel Aviv on Monday, Austin also vowed to continue to support Israel's fight against Hamas, which controls the Gaza Strip, while ensuring humanitarian aid coming into the territory to provide for hundreds of thousands of Palestinians displaced by the fighting.