Sanaa, Yemen. Renewed Houthi threats in the Red Sea and the escalation involving Israel and Iran have brought one of the world’s most volatile maritime routes back into focus. The developments have raised concerns over supply chains, energy flows, freight rates, inflation and global trade.
Wider concerns over maritime disruption
The Red Sea crisis has renewed attention on the Bab el-Mandeb Strait and the Suez Canal, a key corridor linking Asia with Europe and the Mediterranean.
Containers, oil, liquefied natural gas, raw materials, food, industrial products and spare parts move through the route, making any disruption a broader economic concern rather than only a shipping issue.
According to Coface, between 10 per cent and 12 per cent of international maritime trade passes through the Bab el-Mandeb Strait each year. UNCTAD has linked previous Red Sea disruption to rerouting around the Cape of Good Hope, longer voyage distances, delays and increased pressure on freight costs.
Regional escalation adds uncertainty
The latest escalation has added to uncertainty in the region. Israel carried out a strike in Beirut against Hezbollah targets, Iran responded by launching ballistic missiles at Israel, and further Israeli strikes on military and energy targets in Iran followed.
At the same time, the Houthis launched a ballistic missile from Yemen into central Israel. Reuters reported that Yemen’s Iran-backed Houthis announced a ban on Israeli maritime navigation in the Red Sea, raising concerns over vessels perceived to be Israeli-affiliated.
Broader definition of vessel links
The Houthis have said they consider all ships passing through the Red Sea with any connection to Israel to be legitimate military targets.
According to Alketas Drosos, a spokesman for Maritime Commercial Manager & Country Representative for Greece and Cyprus at EOS Risk Group, “this wording is particularly important,” as the connection with Israel “does not necessarily concern only the flag of a ship”.
He said the connection could also involve “ownership, management, charterer, previous call at an Israeli port or even broader commercial relationships of companies associated with the ship”.
Drosos said this makes the threat more difficult for shipping companies to define, as risk can no longer be judged simply by where a vessel is sailing. Instead, companies must examine the wider commercial and operational profile of each ship.
