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Houthis: U.S., U.K. Ships Can Safely Travel Red Sea

The Houthis will stop attacking U.S. and U.K. ships in the Red Sea, the Iran-backed Yemeni terrorist group said this week (Bloomberg, subscription). 
 
What’s going on: The promise was made in response to the Sunday start of the ceasefire agreement between Hamas and Israel “after a year-plus campaign that’s upended global trade.”  

  • “Ships belonging to U.S. and U.K. individuals or entities—and those sailing under their flags—are no longer subject to sanctions as of Jan. 19, according to an email from the rebel group forwarded by the shipping trade organization BIMCO. The Houthis have previously emailed shipping companies, according to a United Nations report.”  

Why it’s important: The Houthis have attacked at least 100 vessels since late 2023, killing at least four people and sinking at least two ships (Reuters). This has forced ships to take a longer, more expensive route around Africa’s Cape of Good Hope. 

  • The volume of crude oil and oil products crossing the Red Sea’s southern entry point was down more than 50% toward the end of 2024, a direct response to the attacks (U.S. Energy Information Administration).  

However … “Ships wholly owned by Israeli individuals or entities, or sailing under the Israeli flag, remain banned from transiting the Red Sea, Bab el-Mandeb, the Gulf of Aden, the Arabian Sea and the Indian Ocean, according to the email from the Humanitarian Operations Coordination Center in Yemen.”  

  • And “any aggression against Yemen by the U.S., U.K. or Israel would lead to restrictions being reinstated.”  

What it means: Maritime security firm Diaplous told clients in a recent note that it foresees “a gradual restoration of shipping operations, which may take several months to stabilize.”  
 

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