Red Sea Tensions Surge as Houthi Attacks Disrupt Global Trade

Introduction

Recent Houthi rebel attacks in the Red Sea have escalated dramatically, threatening one of the world's busiest shipping corridors. These incidents are disrupting global trade routes and raising regional security concerns as the conflict intensifies.

Who Are the Houthis?

The Houthis are Yemeni rebels backed by Iran who control much of northern Yemen. Since November 2023, they've targeted ships in the Red Sea to protest Israel's actions in Gaza. Their attacks have included drones, missiles, and even hijackings of commercial vessels like the Galaxy Leader in November 2023.

2025 Escalation

In 2025, attacks reached new levels:

• July 6: Greek-owned cargo ship MV Tutor sank after drone boat attack
• July 8: Liberian-flagged vessel attack killed 3 crew members
• July 16: 750 tons of Iranian weapons bound for Houthis intercepted
• July 28: Houthis took 10 seafarers hostage after sinking Eternity C

The U.S. and UK responded with airstrikes on Houthi positions, but rebel leader Mohammed al-Bukhaiti vowed to continue attacks until Israel lifts its Gaza blockade.

Global Trade Impact

The Red Sea handles 15% of global shipping traffic. Major companies like Maersk now avoid the route, sailing around Africa instead. This adds 10-14 days to voyages and increases costs by 15-20%. Suez Canal revenues dropped over 50%, prompting Egypt to offer 15% fee discounts to attract ships back.

Regional Security

The conflict draws in multiple players:

• U.S. and UK conduct defensive operations
• Iran supplies weapons to Houthis
• Saudi Arabia seeks negotiated settlement
• Israel strikes Houthi positions in Yemen

China's alleged laser targeting of a German aircraft in July 2025 further complicated the situation.

What's Next?

With no Gaza ceasefire in sight, Houthis threaten "Phase 4" escalation against all Israel-bound ships. U.S. Defense Secretary Lloyd Austin stated: "We will defend shipping lanes while pursuing diplomatic solutions." Meanwhile, 21.6 million Yemenis suffer in the world's worst humanitarian crisis.