The Wall Street Journal reports that pirate activities off the coast of Somalia is increasing the cost of shipping insurance and may even lead to military intervention. 

From the Wall Street Journal:

Pirates have stepped up attacks on merchant vessels in the Gulf of Aden, increasing insurance costs for ship owners and raising the specter of military intervention in one of the world’s most important sea lanes.

The waterway lies between Yemen and Somalia, and connects the Red Sea with the Indian Ocean. It is an important energy corridor, especially for Persian Gulf oil heading west through the Suez Canal. Ships laden with some 3.3 million barrels of crude — almost 4% of daily global demand — move through the waters each day, according to U.S. Department of Energy estimates. The waterway is also an important thoroughfare for goods heading to Europe and the U.S. from Asia.