Houthi attacks on global shipping show widening of Gaza war

While Tehran is keen to avoid a direct confrontation with Israel and its allies, there is mounting evidence that it is using its regional proxies to intensify the pressure against Israel.

Houthi attacks on global shipping show widening of Gaza war

From the moment Hamas launched its devastating attack against Israel on 7 October, one of the world’s primary concerns has been to prevent the conflict from spreading beyond the immediate vicinity of Gaza.

It was for this reason that, within days of the attacks taking place, the Biden administration responded by dispatching two aircraft carrier battle groups to the region — primarily to deter countries like Iran from seeking to escalate the conflict.

Other Western powers, such as the UK, responded in similar vein, sending warships to the region and reinforcing their military presence.

And while this strategy has so far succeeded in confining most of the fighting to the immediate vicinity of Gaza, the mounting threat to international shipping passing through the Red Sea, which has forced a number of major shipping operators to re-route their operations, suggests that the wider threat of the conflict escalating cannot be discounted.

In the past few days, a number of major international shipping companies have announced they are re-routing their operations in response to the worsening security situation in the Red Sea.

They include Maersk, Hapag Lloyd, and MSC, with seven of the ten biggest shipping companies now having suspended their shipping operations in the Red Sea. They were joined on Monday by the British oil giant BP, which announced it is halting all oil and gas shipments through the Red Sea.

Delays and extra costs

Apart from the deteriorating security situation, the main reason shipping companies have opted to re-route their shipping operations is the sharp increase in insurance premiums that the attacks on shipping in the Red Sea have prompted.

Consequently, many ships are being diverted around the Cape of Good Hope on the southern tip of Africa, adding up to two weeks in journey time.

The delays and extra costs incurred by the need to avoid the Red Sea, moreover, are likely to lead to a sharp increase in the cost of energy prices and goods, as well as cause delays to the delivery of essential goods, such as electronics, in the run-up to Christmas.

Oil and natural gas prices have already risen following the announcement that BP has suspended shipments through the Red Sea, with analysts predicting that costs are likely to rise further if the attacks continue, a development that could hurt global efforts to bring inflation caused by the pandemic under control.

The main reason shipping companies have opted to re-route their shipping operations is the sharp increase in insurance premiums that the attacks on shipping in the Red Sea have prompted.

Response to Israel's war

The main cause of the disruption to international shipping has been the recent increase in attacks on commercial shipping by Iranian-backed Houthi rebels based in Yemen.

The Houthis initially indicated they were only targeting Israeli vessels after they declared war against the Jewish state following the launch of Israel's military offensive on Gaza.

But in recent weeks, they have expanded their attacks on commercial shipping vessels travelling through the Red Sea and the Suez Canal in response to Israel's ongoing bombardment of Gaza.

Tankers and cargo ships have been targeted by drone and missile attacks launched from Yemen – and although the damage caused has been minimal in most cases, the threat alone has left trade routes through the Red Sea at a near standstill.

In addition, there have been reports that Somali pirates have also become involved in the attacks, with the latest ship to come under attack in the Red Sea said to have been hijacked by Somali pirates. Initial reports suggested the MV Ruenm, a bulk carrier sailing under a Maltese flag, had become the latest target of attacks against shipping close to the Yemeni coast.

Reports over the weekend said the ship was heading to Somalia when it sent a distress signal, saying six people had boarded it. In response, the Indian Navy sent an anti-privacy patrol ship and a patrol aircraft to track the ship's movement. So far, nobody has claimed responsibility for the hijacking.

Most of the blame, though, for the deteriorating security situation in the Red Sea is being blamed on the Iranian-backed Houthi rebels, who can easily target shipping approaching the Bab al-Mandab strait, the narrow stretch of water – just 20 miles wide - lying between Djibouti and Yemen at the approach to the Suez Canal, one of the world's major trade arteries.

In recent weeks, Al Houthis have expanded their attacks on commercial shipping vessels travelling through the Red Sea and the Suez Canal in response to Israel's ongoing bombardment of Gaza.

Immediate impact on global trade

Approximately 12% of global trade, including 30% of international container traffic, passes through the canal. Billions of dollars of traded goods and supplies pass through the Red Sea every year, and any interruption to its operation immediately impacts the flow of global trade.

Security officials have expressed concern at the ease with which the Houthis have been able to disrupt one of the world's most important trade routes, using their base in the Yemeni capital of Sana'a to target ships in the Bab al-Mandab strait as they enter the Red Sea on their journey to the Suez Canal.

The upsurge in attacks, moreover, has also heightened concern that the Houthis may be operating at the behest of Iran, which has a long history of supplying the movement with weaponry.

Iran's official position, which was articulated by its Supreme Leader, Ayatollah Ali Khamenei, after his meeting with Hamas chief Ismail Haniyeh in November, is that it has no intention of becoming directly involved in the Gaza conflict, even though it is one of Hamas's main supporters.

While Tehran is keen to avoid a direct confrontation with Israel and its allies, there is mounting evidence that it is using its proxies around the Middle East region to intensify the pressure against Israel.

Apart from the Houthi attacks, the Hezbollah militia in southern Lebanon — another key ally of Tehran — claimed earlier this week that it had succeeded in attacking Israel's Iron Dome anti-missile defence system.

The prospect of world trade suffering severe disruption to a major trade route has prompted an increase in the deployment of Western warships to the region, with American, British and French warships being deployed to intercept Houthi attacks on international shipping.

In such circumstances, the potential for the Gaza conflict to escalate into a wider regional war can no longer be ignored.

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