Houthis Threaten Ships in Red Sea, Potentially Impacting Global Trade

The militant group Houthis issued a threat against all ships in the Red Sea bound for Israeli ports, stating that they will become a “legitimate target” if Gaza does not receive food and medicines. The group is supported by Iran and continues to provide support to Hamas in Palestine. This threat comes as Israel’s military operation against Hamas has entered its third month, with the Houthis intensifying their campaign against Israeli traffic in the Red Sea.

While the Houthis had previously threatened to target only Israeli ships, they have now expanded their threat to include all ships heading to Israeli ports. The Iran-backed group has already launched drones and missiles at several naval and commercial vessels, with one cargo ship being hijacked. The threat has also led to widespread disruption in the shipping industry, with some companies altering trade routes to avoid the vulnerable region. This disruption could have a significant impact on global trade, particularly in the Suez Canal, through which approximately 12-14% of global trade passes each day.

India and Israel share close bilateral trade ties, with over $3 billion in Israeli exports. The latest threat from the Houthis will need to be closely monitored by both countries, as it has the potential to impact their trade. Shipping experts warn that the threat cannot be taken lightly, and expect shipping costs and premiums for vessels transiting the area to increase significantly. If the situation is not controlled, merchant ships may avoid transiting through the Red Sea, further impacting global maritime trade.

Source .