Commercial ships are docked at the Houthi-held Red Sea port of Hodeidah.
The cost of shipping goods through the Red Sea is anticipated to remain elevated after further U.S. airstrikes on Yemen, according to industry sources. These strikes, conducted on Monday, have heightened fears of renewed attacks on commercial vessels by the Iran-aligned Houthis. The U.S. action followed the Houthis’ threats to international shipping.
The Red Sea port city of Hodeidah and the Al Jawf governorate north of Sanaa were targeted in the latest U.S. strikes. The Houthis have claimed they would halt attacks on U.S. and UK linked shipping in conjunction with a ceasefire between Israel and Hamas, however, the recent strikes appear to have changed the Houthi’s course of action.
Following the U.S. military action, there was a “significant uptick in the threat profile against commercial maritime traffic within the Red Sea,” stated Munro Anderson, head of operations at Vessel Protect, a marine war risk and insurance specialist. He added that the threat profile is considered critical for vessels owned or operated by Israel and U.S. entities.
The Houthis have launched over 100 attacks on ships since November 2023, sinking two vessels, seizing another, and causing the deaths of at least four seafarers. The group claims these attacks are in solidarity with Gaza’s Palestinians in response to Israel’s conflict with Hamas.
Houthi leader Abdul Malik al-Houthi stated on Sunday that his militants would target U.S. ships in the Red Sea as long as the U.S. continues its attacks on Yemen. Insurance market sources also indicated that missile firings against commercial ships would lead to an immediate increase in rates.
The Houthis, who control most of Yemen, announced last week their intention to resume attacks on Israeli ships passing through the Red Sea if Israel does not lift its restrictions on aid entering Gaza.
“This intermediate period is very risky for us as we don’t have a clear view of what to expect,” a maritime security source said.
