Global trade disrupted as Red Sea crisis raise economic concerns

NEW YORK : The greatest disruption to global trade in decades has resulted from two months of missile, drone, and hijacking attacks against civilian ships in the Red Sea, driving up costs for shippers as far away as Asia and North America. The disruption’s spread is stoking fears of more widespread economic consequences.

The Houthi militant attacks that followed the commencement of the Israel-Hamas conflict have not been stopped despite numerous rounds of retaliatory strikes by the US and its allies as well as a multinational naval operation to patrol the waters.

Here are top 10 updates on Houthis-Red Sea attack

1) The United States has carried out airstrikes in Iraq targeting facilities used by “Iranian-backed militias” in the country following repeated attacks on US forces, Defence Secretary Lloyd Austin said in a statement on Tuesday.

2) Britain said in a joint statement on Tuesday that 24 countries, including the United States, Germany, and Australia, conducted additional strikes on Monday against eight targets in Houthi-controlled areas of Yemen. 

3) “In response to continued illegal and reckless Houthi attacks against vessels transiting the Red Sea and surrounding waterways, the armed forces of the United States and the United Kingdom, with support from Australia, Bahrain, Canada, the Netherlands, and New Zealand, conducted additional strikes against eight targets in Houthi-controlled areas of Yemen,” the statement read. 

4) “These strikes were designed to disrupt and degrade the capability of the Houthis to continue their attacks on global trade and innocent mariners from around the world while avoiding escalation,” it added.

5) The European Union faces a risk of consumer prices surging and growth slowing due to disruptions to shipping through the Red Sea, though it has yet to feel an economic impact, a top EU official said on Tuesday.

6) Britain plans to announce new sanctions in the coming days targeting Houthi financing of attacks on shipping in the Red Sea, Prime Minister Rishi Sunak said on Tuesday.

7) US and British forces carried out a fresh round of strikes on Monday in Yemen, targeting a Houthi underground storage site as well as missile and surveillance capabilities used by the Iran-aligned group.

8) “We’re going to use the most effective means at our disposal to cut off the Houthi’s financial resources, which are used to fund these attacks. We are working closely with the United States and plan to announce new sanctions measures in the coming days,” Sunak told the Parliament.

9) After carrying out another round of strikes against Houthis, UK Foreign Secretary David Cameron said that Britain will continue to degrade the ability of Houthis to conduct attacks, as per reports. 

10) David Cameron noted that Houthis have carried out more than 12 attacks on shipping in the Red Sea since the UK last took action 10 days ago and called these attacks “illegal and unacceptable.”