Latest Developments
Danish shipping company A.P. Moller-Maersk (Maersk) said on July 17 that the consequences of diverting ships away from the Red Sea to avoid attacks launched by Iranian-backed Houthi rebels in Yemen will be felt throughout its entire global network. Since November 2023, Houthi rebels in Yemen have launched dozens of attacks against commercial vessels in and around the Red Sea, disrupting global trade. Maersk said that “the cascading impact of these disruptions extends beyond the primary affected routes, causing congestion at alternative routes and transshipment hubs essential for trade with Far East Asia, West Central Asia, and Europe.” The statement highlighted that Asian ports “are experiencing delays as ships reroute and schedules are disrupted, caused by ripple effects from the Red Sea,” adding that “delays in Southeast Asian hubs pose a risk of disruption at Australian ports due to vessel bunching on arrival, resulting in longer waiting times and other delays.”
Expert Analysis
“The international economic consequences of Tehran-backed terrorism in the Red Sea continue to mount, with no end in sight. Until the Houthis are deprived of the weapons they are using to conduct these attacks or the United States and its allies take major steps to decisively shift the cost-benefit analysis of the Islamic Republic of Iran and the Houthis, we should expect more attacks and more damage to international trade and the economic interests of dozens of countries around the world.” — Bradley Bowman, Senior Director of FDD’s Center on Military and Political Power
“These Houthi attacks are occurring almost daily. The United States is spending billions of dollars in a defensive effort to engage missiles in flight or destroy them on the ground in Yemen. If Washington wants to deter these attacks, we need to cut off the supply chain of missiles and parts to the Houthis at the source — Iranian ships and ports.” — RADM (Ret.) Mark Montgomery, FDD Senior Fellow and Senior Director of FDD’s Center on Cyber and Technology
Houthi Attacks Continue
On July 9, the Houthis attacked the American-flagged Maersk Sentosa, which is owned by Maersk. Maersk reported no injuries or damage to the ship or cargo, confirming that the vessel continued to its next port of call. The next day, Houthi rebels attacked a commercial vessel in the Red Sea’s Bab el-Mandeb Strait. According to the Associated Press, the terrorist group targeted a Liberian-flagged tanker south of Mocha, with the captain reporting explosions off the ship’s side.
On July 15, U.S. Central Command (CENTCOM) stated that “Iran-backed Houthis launched multiple attacks” against a Panama-flagged, Israel-owned, Monaco-operated vessel in the Red Sea carrying vegetable oil from Russia to China” with surface vessels, one uncrewed surface vessel (USV), and two small boats, later launching “an anti-ship ballistic missile from a Houth-controlled area of Yemen, over the Red Sea.” Additionally, CENTCOM said that the Houthis separately attacked “a Liberian-flagged, Marshall Islands-owned, Greek operated crude oil tanker with a USV” in the Red Sea. The same press release also confirmed that over the previous 24 hours, CENTCOM forces had “successfully destroyed five Iranian-backed Houthi uncrewed aerial vehicles (UAV), three over the Red Sea and two over Houthi-controlled areas of Yemen.” CENTCOM noted that “these UAVs presented an imminent threat to U.S., coalition forces, and merchant vessels in the region,” concluding that this “continued reckless behavior by the Iranian-backed Houthis threatens regional stability and endangers the lives of mariners across the Red Sea and Gulf of Aden.”
Disruptions to Red Sea Trade
Roughly 12 percent of all global trade, amounting to approximately $1 trillion of goods per year, passes through the Suez Canal at the northwestern edge of the Red Sea. Following weeks of Houthi harassment of commercial ships, U.S. Defense Secretary Lloyd Austin announced Operation Prosperity Guardian on December 18. The initiative seeks to ensure freedom of navigation in the Red Sea, the Gulf of Aden, and the Bab el-Mandeb Strait. The White House said in January that Houthi attacks on shipping have affected more than 50 countries. In April, the Defense Intelligence Agency released a report on the economic impacts of the Houthi’s attack campaign, including an approximately 90 percent decline in container shipping through the Red Sea, financial strains on shipping companies forced to divert around Africa, and “compounding ongoing stress to global maritime shipping caused by interruptions at the Panama Canal due to drought.”
On January 31, the European Union (EU) announced the inauguration of a mission in the Red Sea to defend commercial vessels from Houthi attacks. EU foreign policy chief Josep Borrell said that the mission, dubbed Aspides, or “shield” in Greek, would be for defensive purposes only and not participate in any attacks against the Houthis. Borrell added that the increased expense of rerouting ships away from the Red Sea shipping routes was contributing to inflation.
“10 Things to Know About the Houthis,” FDD Insight
“Houthis Target Israel and International Shipping,” FDD Flash Brief
“Houthis Sink First Commercial Ship in Red Sea,” FDD Flash Brief
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