Houthi Rebels Resume Attacks in Red Sea, Threatening Global Maritime Trade
The Houthi rebels in Yemen have resumed attacks on ships in the Red Sea, causing concerns about global maritime trade and the potential for a wider regional conflict. The Houthis first flexed their military might in 2023 when they attacked shipping in the Red Sea, and despite previous attempts by the US to bomb them into submission, the group has continued to pose a threat.
The US military launched precision airstrikes against the Houthi leadership on March 15, 2025, but the campaign ultimately failed to establish air superiority or stop attacks on US warships. The Houthis downed several MQ-9 Reaper drones and two F/A-18 Super Hornets were lost in carrier accidents.
The administration halted the bombing campaign on May 6, 2025, under an Oman-brokered deal that required the Houthis to stop targeting American ships, but not other commercial vessels. However, President Donald Trump promised 'major military punishment' for the Houthis and Iran after a successful Houthi strike on a Saudi oil tanker.
Experts warn that a sustained Houthi campaign could push shipping out of the Suez Canal and around Africa, leading to higher insurance premiums, fewer tankers available to move each barrel of oil, and longer transit times. The result would be higher shipping costs with a premium embedded in the price of oil.