Houthis, Red Sea Crisis, and the Yemen Conflict: A Global Trade Spotlight

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United States Central Command (CENTCOM) released updates this morning about a smaller operation, contrasting with the 73 strikes the US and UK conducted the day before across at least six Yemeni provinces controlled by the Iran-backed Houthis.

Many in Western societies defend these air campaigns as safeguard actions for the Red Sea region, aiming to protect a vital route where attacks on commercial ships have caused notable disruptions to global trade.

Yet the Yemeni rebels have shown resilience, signaling a robust response and warning of harsher measures. They describe the recent actions as unfair and warn that additional fronts could open, potentially widening the conflict beyond Yemen and affecting the Gaza context that already remains volatile.

Key focus remains the crisis in the Red Sea, with implications for regional stability and global markets.

Who are the Houthis?

The group known as the Houthis, officially Ansar Allah (Supporters of Allah), emerged under the leadership of Hussein Bedreddin Al Huti. He sparked a movement amid concerns about corruption within Yemen and the country’s governance during the 1980s, along with tensions from external ties in the region.

Rooted in the Zaydi Shiite branch of Islam and backed by Iran, the Houthis seized Yemen’s capital in 2014 and expanded their control into large parts of the north and west. Since then, they have faced off against the internationally recognized government while continuing to press their territorial ambitions.

The conflict intensified in 2015 with a coalition led by Saudi Arabia, supported by the United States, aiming to roll back Houthi advances and curb their influence. The group has proven capable of sustaining operations despite heavy pressure and ongoing military campaigns.

Estimates suggest the movement comprises tens of thousands of fighters and commands a substantial weapons arsenal, much of it supplied by allies in the region. The Houthis also play a central role in the broader Axis of Resistance, linking with other Shiite groups across the Middle East.

Why are they attacking the Red Sea?

Since mid-November, the Houthis have launched numerous attacks on merchant shipping in the Red Sea as a strategic pressure point aimed at influencing Israel’s actions in the Gaza context. This approach seeks to exert economic leverage while signaling intent to disrupt maritime operations linked to the region.

The flow of global trade through the Red Sea has already seen adjustments as major companies reroute ships to avoid the affected corridor. The route handles a significant share of world maritime activity, including portions of grain, oil, and liquefied natural gas shipments.

Market observers note fluctuations in crude oil prices, with incremental increases reflecting the uncertainty surrounding the conflict and the evolving risk environment for global energy supplies.

A new war in Yemen?

Official statements from Washington and London emphasize that the recent strikes are not aimed at escalating the conflict with the Houthis but at deterring their capabilities and reducing the risk of missiles and drones targeting cargo vessels. Nevertheless, the Houthis have signaled a willingness to continue challenging external actors and to pursue actions against ships bound for Israel and those heading to Israeli ports.

Calls for restraint accompany warnings from the rebels about continuing operations despite international pressure. The United States has cautioned that Houthi capabilities have diminished somewhat following the strikes, while regional observers express concern that the crisis could widen and involve broader regional actors if backing for the Houthis strengthens or if new fronts emerge.

Across the region, policymakers weigh strategies to balance deterrence with stability, mindful of how the Red Sea crisis intersects with broader geopolitical dynamics and the potential for a broader regional confrontation that would affect commerce and security in multiple theaters.

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