Middle east

Yemeni Analyst: Houthi Operations in the Red Sea Have a Significant Economic Cost


Serious economic repercussions continue to emerge as a result of the attacks by Houthi terrorist militias in the Red Sea. These practices involve the militias exploiting the Palestinian issue to achieve their goals and escape their crises.

Impact on International Shipping

A report by “Royaume News” revealed that maritime traffic in areas targeted by the Iran-backed Houthi militias on commercial ships has been affected, putting pressure on international trade.

American intelligence has reported an 80% decrease in container shipping through the Red Sea from December to February due to attacks by Iran-supported Houthi terrorist militias on cargo ships.

The U.S. Defense Intelligence Agency stated that Houthi attacks on cargo ships have exacerbated pressures on global maritime shipping, which was already strained due to the disruption of passage through the Panama Canal caused by drought.

The United States and the United Kingdom had previously conducted repeated airstrikes against the Houthi militias to reduce their ability to target ships in the region and are working to prevent the militias’ sources of income and resources by imposing additional financial sanctions. However, despite these efforts, the Houthi militias have continued their attacks without hesitation, and the economic impact has expanded.

Houthi attacks have also negatively impacted humanitarian relief efforts, with reports of delays in aid delivery to Yemen and Sudan by several weeks due to alternative routes around the African continent.

High Cost

According to Wadih Ben Atiya, a southern political analyst, this high economic cost and its repercussions on living conditions represent one of the outcomes of the Houthi militias’ practices that disrupt navigation in the Red Sea. With costs potentially reaching a level of food insecurity, calls to intensify pressure on the Houthi militias have increased to force them to end these reckless practices.

He added that the scope of disruptions affecting container shipping through the Red Sea now includes its entire global network, noting that the cumulative impact of these disruptions

extends beyond the affected main routes to affect shipping via alternative routes and key shipping centers connecting East Asia with Central Asia and Europe.

He highlighted that Houthi operations in the Red Sea have a significant economic cost, in addition to the worsening security chaos that could turn into a full-scale conflict in the near future.

Since last December, global shipping companies have been forced to reroute their ships to and from Asia via the Cape of Good Hope around Africa due to the increase in attacks by Iran-backed Houthi militias on maritime navigation.

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