Houthi Attacks

• Context (IE | TH): Attacks on commercial ships were carried out by Houthi militants from Yemen in the Red Sea as the spillover of the ongoing Israel-Palestine conflict.

• The US has launched Operation Prosperity Guardian to ensure the safety of commercial ships.

Houthis and Israel-Palestine War Connection

• During the Second intifada of 2000, Houthis staged protests in solidarity with the Palestinian cause.
• Houthis declared war against Israel after the Israel-Palestine conflict and launched attacks towards Israel and Israel-related vessels in the Red Sea.

Global economy and Red Sea attacks

• The Red Sea provides a shorter route to the Mediterranean Sea with the Indian Ocean via the Suez Canal.
• Houthi attacks forced the ship to take a two-week longer route via Africa.
• Attacks near the Red Sea and Suez Canal (12% of global shipments) may lead to rising global inflation.

Impact on Oil prices

• With the Suez Canal accounting for 9.2 million barrels per day of total oil flows in the first half of 2023.
• Instability in the Red Sea causes increased fuel costs and war risk surcharge.
• Oil prices rose more than a dollar a barrel after the Houthi attacks.

Operation Prosperity Guardian

• The US initiated a new multinational security joint patrol initiative in the Red Sea.
• It is being carried out under the Combined Maritime Forces and the leadership of its Task Force 153.
• The Combined Maritime Forces is a multi-naval taskforce with 39 members, including India, Pakistan, Sri Lanka, the United States and Yemen.
• Combined Task Force 153 was set up in April 2022 to improve maritime security in the Red Sea, Bab el–Mandeb and the Gulf of Aden.