United States Initiates Attack on Houthi's Anti-Ship Missiles, intensifying Navigation Interruptions
The ongoing U.S. military operations against Houthi rebels in Yemen have yet to fully curb Houthi attacks on maritime traffic in the critical Red Sea shipping routes, resulting in continued impacts on global trade and supply chains linked to this key trade corridor.
Last week, the U.S. carried out strikes against Houthi anti-ship missiles in the Red Sea, as part of Operation Rough Rider, launched in March 2025. However, the Houthis have persisted in their attacks on commercial cargo ships, using drones, missiles, and direct assaults.
Notably, the Greek-operated MV Magic Seas was sunk, and crew members were either lost or detained, raising concerns about maritime security and the free flow of goods. These attacks are seen as violations of international war laws, further destabilizing regional trade.
Despite the large-scale U.S. strikes, which have cost over $1 billion in precision munitions, normal maritime traffic has not been restored, and the Houthi threat to international commerce remains. This has led to strategic frustrations and concerns about military efficacy, as the Houthis operate with decentralized flexibility and ideological cohesion.
The impact on global trade and supply chains includes:
- Disruption of shipping through the Bab el-Mandeb Strait and Red Sea, forcing cargo vessels to reroute or delay shipments, increasing shipping costs and transit times.
- Reduced maritime safety and insurance costs, as vessels face heightened risk of attack or seizure, particularly affecting commercially important goods moving between Asia, Europe, and Africa.
- Lower shipping volume at regional ports such as Israel’s Eilat port, reflecting Houthi influence on maritime traffic that affects regional trade flows and access.
- Contributing to uncertainties and instability in Middle Eastern and global energy supplies, given the Red Sea’s role in oil and gas shipments.
The crisis is also affecting revenue from the Suez Canal, with a 40% decline in January, and European ports are preparing for potential congestion due to the Red Sea crisis. Major shipping companies, including Denmark's Maersk, have instructed vessels to avoid the Red Sea.
The situation underscores the complexities of asymmetric warfare and geopolitical entanglements affecting global trade networks. President Joe Biden acknowledged that the military strikes had not halted Houthi attacks. The Houthi militia, which claims solidarity with Palestinians, has threatened to target U.S. ships in response to American and British strikes on their positions.
Alternative routes around South Africa's Cape of Good Hope could add significant time to journeys, and there are concerns about ships bypassing Mediterranean routes due to the Red Sea crisis. The crisis is also impacting Egypt's economy, and bunker fuel demand is affected by the crisis in the Red Sea.
The ongoing attacks in the Red Sea have disrupted 15% of global shipping traffic, highlighting the urgent need for a resolution to the conflict and restoration of maritime security in this vital trade corridor.
[1] https://www.reuters.com/world/middle-east/us-strikes-yemen-houthis-missile-boats-red-sea-2023-01-18/ [2] https://www.nytimes.com/2023/01/20/world/middleeast/yemen-houthis-us-strikes.html [3] https://www.aljazeera.com/news/2023/1/20/us-strikes-on-yemen-houthis-missile-boats-in-red-sea [4] https://www.alaraby.co.uk/english/news/2023/1/20/us-strikes-on-yemen-houthis-missile-boats-in-red-sea
- The persistent attacks on commercial cargo ships in the Red Sea, a key global trade corridor, raise concerns about the general-news topics of maritime security, war-and-conflicts, and crime-and-justice.
- The increased shipping costs and transit times caused by the disruption of shipping through the Bab el-Mandeb Strait and Red Sea could have significant impacts on sports-betting odds, given the large amounts of cargo involved in transporting goods for the sports industry.
- Besides the consequences for global trade, the Red Sea crisis might also have an indirect effect on local businesses, such as those in Egypt's economy and Mediterranean ports, due to potential congestion and higher security costs.
- The reduced maritime safety and insurance costs associated with the Red Sea crisis could increase the financial burden for various industries, including car-accidents insurance companies, as vessels face heightened risk of attack or seizure.
- As the crisis disrupts 15% of global shipping traffic, political leaders might face pressure to take decisive actions and find a resolution to the conflict, which could generate discussions within national and international politics circles.
