Tuesday, January 16, 2024

Yemen’s Houthis Threaten US Ships as Tankers Avoid | TOME

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Yemen’s Houthi Movement Targets US Ships in Red Sea Region

The Houthi movement in Yemen has announced its intention to expand its targets in the Red Sea region to include US ships. This comes after recent strikes by the US and Britain on Houthi sites in Yemen. The attacks on ships in the area since November have caused concern among major powers and impacted companies operating in the region.

Solidarity with Palestinians

The Houthis claim that they are acting in solidarity with Palestinians in their conflict with Israel. They argue that British and American ships have become “legitimate targets” due to the strikes launched by these countries on Yemen. Nasruldeen Amer, a spokesperson for the Houthis, stated that it is enough for a ship to be American for it to be targeted, regardless of whether it is heading to Israel or not.

Recent Attacks

In the latest apparent attack, a US-owned and operated dry bulk ship called Gibraltar Eagle was struck by an anti-ship ballistic missile launched by Houthi forces in Yemen. Fortunately, there were no reports of injuries or significant damage. Another attack targeted a Marshall Islands-flagged, US-owned bulk carrier near Yemen’s port of Aden. The vessel was assessed not to be Israel-affiliated, suggesting that the attack was in response to the recent strikes on Houthi military positions.

Undeterred Houthis

Despite the US strikes, the Houthis appear undeterred and continue to carry out attacks. This is evident from the recent explosion near Yemen’s Hodeidah airport. While it is unclear what caused the blast, it indicates that the conflict is far from over.

Impact on Shipping

The attacks on ships in the Red Sea have had a significant impact on shipping routes. Many container vessels have been pausing or diverting from the Red Sea, which leads to the Suez Canal. Instead, they are taking the longer route via the Cape of Good Hope. Ship-tracking data shows that at least 15 tankers have altered their course in response to the escalating conflict.

QatarEnergy’s Response

QatarEnergy, the world’s second-largest exporter of liquefied natural gas, has also decided to avoid the Red Sea. Several LNG tankers loaded at Ras Laffan and heading to the Suez Canal have stopped in Oman for security advice. If passing through the Red Sea remains unsafe, they will opt for the longer route via the Cape of Good Hope. This decision could add approximately nine days to the journey from Qatar to northwest Europe.

International Response

The United States and its ally Britain have expressed their commitment to protecting free navigation in the Red Sea. The US recently shot down an anti-ship cruise missile fired by the Houthis towards a US destroyer. China has also called for an end to attacks on civilian vessels in the Red Sea to protect its commercial interests.

Supply Disruptions

The attacks on shipping in the Red Sea have caused disruptions to supply lines. Carmaker Suzuki, for example, has halted production at its Esztergom plant in Hungary due to delayed engine deliveries caused by the attacks.

Limited Impact on Energy Markets

While the attacks have had a significant impact on shipping, their impact on energy markets has been limited. European benchmark gas prices were lower, and oil prices lost roughly 1 percent as the conflict’s limited impact on crude output prompted profit-taking.

Conclusion

The Houthi movement’s decision to expand its targets to include US ships in the Red Sea region has raised concerns among major powers and impacted companies operating in the area. The attacks have led to disruptions in shipping routes and supply lines. However, the impact on energy markets has been limited so far. The international community continues to call for an end to attacks on civilian vessels and the protection of free navigation in the Red Sea.

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