Opinion Express View on Houthi rebels: Turbulence in the Red Sea
Threats from Houthi rebels could upend commerce in one of the world’s busiest trade routes. Long-term peace depends on resolution of Israel-Hamas conflict
On December 23, MV Chem Pluto, a Liberia-flagged, Japan-owned and Netherlands-operated tanker with a largely Indian crew, faced an attack. Hours later, MV Sai Baba with 25 Indians on board came under a drone attack in the Southern Red Sea. 
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The conflict in West Asia has spilled over into one of the world’s busiest trade routes. Since mid-November, Houthi rebels who control large parts of Yemen have been firing drones and missiles on ships in the Red Sea. The rebels, reportedly backed by Iran, claim that the attacks are in solidarity with Hamas. But the turmoil has escalated in the last week with Houthi projectiles hitting ships with no clear links with Israel. In the last four days, two commercial ships with Indian connections have been hit.
On December 23, MV Chem Pluto, a Liberia-flagged, Japan-owned and Netherlands-operated tanker with a largely Indian crew, faced an attack. Hours later, MV Sai Baba with 25 Indians on board came under a drone attack in the Southern Red Sea. The Yemeni rebels have not claimed responsibility for these attacks. But the US Central Command has said that MV Sai Baba faced Houthi belligerence, while MV Chem Pluto was hit by a drone launched from Iran.
Connecting the Mediterranean with the Indian Ocean, the Red Sea accounts for nearly 30 per cent of the world’s ship container traffic, 12 per cent of trade, 10 per cent of seaborne petroleum commerce. Ships diverted from the waterway will be forced to go around the Cape of Good Hope, pushing trade to the pre-Suez Canal era. Many shipping companies have started taking the longer journey, which could increase fuel costs, add days in deliveries and raise prices of imported goods, especially oil from West Asia — this is serious for India which depends on the region for the bulk of its oil supplies.
Crude prices have been rising since the conflict intensified. BP has paused shipments through the Red Sea, pushing up prices to the highest since the Israel-Hamas conflict began.
Last week, the US launched a multi-national naval force, Operation Prosperity Guardian, to guard against attacks by the rebels. The Danish shipping giant Maersk Line Ltd is planning to resume its Red Sea operations. But several countries are absent from this US-led force. Egypt, which stands to be one of the heaviest losers from the decline in Suez Canal commerce, hasn’t condemned the Houthis. Saudi Arabia, which has been negotiating peace with the Yemeni group in recent months, too, hasn’t come out in support of the US-led force. It’s clear that peace in the straits will depend on resolution of the Israel-Hamas conflict.
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