Overview

• Since mid-November 2023, the Yemen-based, Iran-backed Houthi rebel group has been attacking commercial ships in the Red Sea, causing major shipping companies to avoid the region and reroute their vessels.
• The attacks have led to increased shipping costs and longer delivery times, which could potentially lead to higher consumer prices globally.
• The United States has spearheaded a twenty-country naval task force to protect commercial ships in the region, but some experts argue that a defensive posture alone is unlikely to deter Houthi attacks.
• The Red Sea is a critical artery in the global shipping system, with one-third of all container traffic flowing through it. Any sustained disruption in trade there could have significant global economic impacts.
• The situation has prompted concerns about potential wider regional conflict, including with Iran, which has sent its own warship into the sea.