Houthi forces in Yemen deliberate their reaction to US and Israeli strikes, raising concerns over potential disruptions to Red Sea and Suez Canal shipping.
The next few days are critical as Houthi forces in Yemen weigh their response to US and Israeli strikes on Iran, raising fears of renewed disruption to Red Sea and Suez Canal shipping, reports New York's Journal of Commerce.
Geopolitical analyst Hisham Al-Omeisy told the S&P Global shipping conference in Los Angeles that Houthi leadership is divided. Hardliners are pressing for military action, while others warn that attacks would trigger a strong US and Israeli response that could weaken their military capability.
Mr. Al-Omeisy said protests in Houthi-controlled areas are demanding retaliation, citing the group's anti-US and anti-Israel rhetoric. He warned that the Houthis risk losing legitimacy if they fail to act, though a limited response may be possible to save face.
Major container lines largely avoided the Red Sea route since late 2023 when Houthi attacks began, forcing diversions around southern Africa. Some carriers resumed limited transits after the Israel-Hamas ceasefire last October, but renewed conflict could halt them again.
Mr. Al-Omeisy noted that the Houthis have profited from side deals with shipping companies paying protection money to secure safe passage. He emphasized that the attacks have become not only political but also a financial incentive.
Shipping consultant Robbert van Trooijen added that piracy remains a lucrative business, underscoring the financial windfall the Houthis derive from threatening commercial vessels.
