The blockade of the Bab al-Mandeb Strait and the Red Sea by the Houthi Ansarullah movement created a crisis that negatively affected global trade and led to increased food prices. In this respect TASS Oleg Kobyakov, director of the liaison office of the UN Food and Agriculture Organization (FAO) with Russia, said:
Kobyakov noted that due to the closure of the Bab el-Mandeb Strait and the Red Sea by the Houthis, the freight cost of ships traveling on this route has almost quadrupled, and the cargo transportation volume has decreased by 30 percent. He emphasized that the world’s largest shipping companies refuse to use this route, which leads to disruption of supply chains and increased transportation costs from other routes.
The economic damage caused by the quarantine leads to increased product prices, inflation and deterioration in the availability of food products for consumers. FAO chief economist Maximo Torero expressed concern about the risks posed by the situation in various maritime areas, emphasizing the importance of ensuring the security of global trade routes.
After the escalation of conflicts in the Gaza Strip, the Houthis announced their intention to hit Israel and prevent ships from passing through the Red Sea and Bab al-Mandeb Strait until the operation in the region is over. Attacks on civilian ships in these areas began in mid-November last year.
Previously USA accused Iran is preparing for Houthis’ attacks on commercial ships in the Red Sea.