Context: A Japanese-owned chemical tanker off the coast of India was targeted by a drone, allegedly fired from Iran, marking the seventh Iranian attack on commercial shipping since 2021, according to the Pentagon.

News:

• A recent report indicates that the drone assault on a vessel near Gujarat originated from Iran. The targeted ship, MV Chem Pluto, is a chemical tanker with a Liberia flag, Japanese ownership, and Netherlands operation, transporting crude oil from Saudi Arabia to the Mangalore coast.
• The responsibility for the drone attack is being linked to the Houthi group based in Yemen, which has been conducting a series of drone and rocket attacks on ships associated with Israel.
• Their motivation is reportedly linked to Israel's perceived ongoing aggression in Gaza.

The global supply chains are facing disruption due to Houthi attacks on ships

Location: concentrated in the Red Sea and the Bab el-Mandeb straits off the Yemeni coast. The Red Sea, spanning almost 2,000 kilometers, serves as a crucial link between the Mediterranean Sea and the Indian Ocean through the narrow Suez Canal. Approximately 15% of worldwide shipping traffic, including roughly 30% of global container trade, traverses the Suez Canal.

Impact: The heightened risk of Houthi attacks has prompted the imposition of a "war risk" surcharge on every vessel navigating this route. In response to these threats, British Petroleum has temporarily halted its movements through this strategic passage, opting for a longer, more fuel-intensive, and time-consuming route around Africa's Cape of Good Hope, which takes approximately 34 days.

Escalation: The Houthi rebels' warning, "Red Sea will burn," comes in the context of Operation Prosperity Guardian, indicating a potential escalation of tensions in the region.

Suez Canal

• The Suez Canal serves as the most expeditious maritime route connecting Asia and Europe, linking the Mediterranean Sea to the Red Sea and extending further to the Indian Ocean. It plays a crucial role in the transportation of oil and liquefied natural gas (LNG), facilitating the shipment of approximately nine million barrels of oil daily through the canal in the first half of 2023. Annually, around 17,000 ships traverse the Suez Canal, transporting goods valued at roughly $1 trillion.
• As for Operation Prosperity Guardian, it is a multinational security initiative initiated by the United States to counter the escalating attacks targeting international traffic bound for Israel. The coalition involved in this operation includes the United Kingdom, Bahrain, Canada, France, Italy, the Netherlands, Norway, Spain, and Seychelles, in addition to the United States.

About Houthis:

• The Houthi movement, also known as the Ansar Allah movement, is a Shia Islamist political and military organization situated in Yemen. Primarily composed of Zaidi Shias, its leadership, largely from the Houthi tribe, guides the movement.
• The movement's official slogan includes declarations such as "God is the Greatest," along with sentiments expressing opposition to America and Israel, a negative view towards Jews, and a call for victory to Islam.
• Influenced by the Lebanese Shia political and military organization Hezbollah, the Houthi movement has played a significant role in the Yemen Civil War, a conflict lasting over a decade.
• The Yemen Civil War has been characterized by the Houthi forces, supported by Iran and Hezbollah, clashing with the Yemeni government, backed by Saudi Arabia and Western powers. Over the course of the conflict, the Houthis have gained control over substantial portions of northern and western Yemen, including the official capital, Sanaa.