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Maersk shares fall to a three-month low amid prospects of Gaza deal reopening Red Sea Route

Maersk shares dropped on Thursday, reaching their lowest level since July. Investors anticipated that a Gaza ceasefire agreement could restore container shipping routes via the Red Sea and Suez Canal in time, alleviating a capacity shortage which has been supporting freight rates.

Israel and Hamas reached an agreement on Wednesday on the first phase in President Donald Trump's plan to rebuild Gaza. This has raised hopes that the Houthi forces of Yemen, which are aligned with Iran, will stop their attacks against commercial shipping on the Red Sea. Since late 2023, such attacks have forced shippers south of Africa to reroute their shipping.

The Houthis are yet to make any comments on the ceasefire agreement or indicate a policy shift. The group has claimed responsibility for the attack on a Dutch-operated ship last week.

Maersk shares fell 2% to their lowest level since July 8 at 0914 GMT.

Analyst Mikkel Emil Jensen of Sydbank said that "Maersk's share price is declining due to expectations of further reductions in freight rates, in conjunction with an increased probability of safe passage across the Red Sea."

Analysts warn that shipping companies will likely wait for months to receive assurances of a ceasefire.

Analysts at Sydbank, ABG Sundal Collier and Sydbank believe that a return to Suez will increase the available shipping capacity, and further reduce freight rates. These have already dropped from their peaks in early this year.

Maersk didn't immediately respond to an inquiry for comment. Vera Dvorakova reported. Stine Jacobsen wrote the article. Jacob GronholtPedersen, Mark Potter and Jacob GronholtPedersen edited the text.

(source: Reuters)