Context: U.S. Navy helicopters sank three vessels operated by Yemen’s Iran-backed Houthi rebels that had attacked a container ship in the Red Sea, the military said on Sunday.

News:

• The U.S. Navy’s actions came in response to a request for assistance from the ship. Maersk suspended the passage of vessels through the Bab al-Mandab Strait in the Red Sea for 48 hours.
• While transiting the strait, the vessel was targeted with two anti-ship ballistic missiles that were shot down by the U.S. military.

About:

Maersk Hangzhou, a Singapore-flagged and Denmark-owned and -operated container ship, came under attack for a second time in 24 hours while transiting the Red Sea. 

Who is attacking ships in the Red Sea

Since December 15th, four of the most significant container-shipping firms globally—CMA CGM, Hapag-Lloyd, Maersk, and MSC—have halted their operations in the Red Sea due to assaults on commercial vessels by Yemen's Houthi militants, who are backed by Iran.

Reasons of attacks:

• The Houthi attacks on ships in the Red Sea are believed to be driven by their support for Hamas and their opposition to Israel.
• The attacks are seen as part of their efforts to express solidarity with Hamas and target vessels heading to Israel.
• The Houthis have escalated their use of drones and rockets against foreign-owned ships and have also launched such attacks toward Israel.

The Houthi attacks on ships in the Red Sea have potential implications and impacts:

1. Risk of Military Escalation in the Middle East:

• The attacks increase the risk of military escalation in the Middle East.
• Western countries are working to restore order, potentially leading to increased naval activities and, in extreme cases, military actions against the Houthis to ensure free passage.

2. Impact on Egypt:

• Egypt heavily relies on revenue from the Suez Canal, a major income SOURCE.
• The country, already facing a financial crisis, may experience economic challenges if the canal faces prolonged disruptions.

3. Economic Impacts:

• A sustained closure of the Suez route could elevate trade costs as shipping is diverted around Africa, resulting in longer transit times and higher insurance premiums.

4. Short-term Supply-chain Threats:

• The attacks may prompt widespread rerouting of trade, causing short-term disruptions to global supply chains.
• - The incident with the Ever Given in 2021, which blocked the Suez Canal for six days, exemplifies how such disruptions can amplify global supply-chain challenges.