In a mounting crisis, the United States officially labeled Yemen-based Houthi rebels as terrorists on Wednesday. This move came in the wake of a second assault by the militants on a U.S.-operated vessel within the Red Sea region this week, prompting the U.S. military to respond with fresh strikes.
The Houthi militia, aligned with Iran, has been targeting ships since November, disrupting trade routes between Asia and Europe and raising concerns among major global powers. The group claims solidarity with Palestinians and vows to broaden its attacks on U.S. ships in response to American and British airstrikes on its positions.
On the recent incident, the Houthi movement asserted that its missiles had scored a “direct hit” on the U.S. Genco Picardy bulk carrier. Genco, the shipping operator, confirmed the attack, revealing that the vessel sustained limited damage while transiting through the Gulf of Aden.
Responding to the threat, the U.S. military disclosed that it had preemptively struck 14 Houthi missiles, citing an imminent danger to merchant vessels and U.S. Navy ships in the region.
Despite the U.S. designation and military actions, the Houthi spokesperson affirmed their commitment to continue attacks on ships heading to Israel, dismissing the impact of the terrorist label on their stance.
Amidst the escalating crisis, major shipping lines, including Maersk, have rerouted vessels, causing significant disruption to global supply chains. The Red Sea, a vital passage connecting Europe and Asia, now faces congestion, with freight rates doubling since December and war risk premiums on the rise.
As concerns grow, Italy proposes the creation of a European Union maritime security mission to address the crisis, while fears of prolonged disruptions prompt considerations of permanently rerouting traffic away from the Mediterranean.
The attacks, targeting a route handling 15% of the world’s shipping traffic, are not only affecting trade but also raising inflationary pressures and threatening a shortage of tankers, according to Saudi oil giant Aramco’s CEO. As tension grips the region, the international community watches closely, awaiting potential diplomatic solutions to defuse the Red Sea crisis.
