Houthis & Red Sea Crisis Threaten Global Energy Markets

The crisis in the Red Sea is spreading rapidly and is now set to threaten global energy flows unless decisive action is taken. What started with the Houthis, a Shi’a Islamic rebel group in control of large portions of northern Yemen trained and equipped by Iran, attacking shipping in the Red Sea to “support Hamas,” is rapidly turning into a regional conflagration. This emerging conflict is set not only to ignite tensions in the Middle East but also to ravage the world’s oil market.

Already ships from forty-four countries have been attacked by the Houthis in the open sea, prompting the United States and 12 other countries to sign a statement condemning these attacks against commercial vessels. The U.S. and U.K. have begun a joint operation dubbed Prosperity Guardian, aptly named for the consequences of failure, to stop these attacks. This operation is currently striking Houthi targets across Yemen, while the Houthis’ patron, Iran, has escalated by striking at targets in Iraq, including an alleged “Israeli spy base.” The strike killed a well-known Kurdish businessman and his 1-year-old daughter, and seriously wounded his wife and two sons.

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