By Faisal Abu Bakr | 2025-08-11

ADEN -- The Houthis' recent sinking of commercial cargo ships has intensified fears of a shutdown of Red Sea shipping traffic, threatening global trade flows and Yemen's humanitarian situation, experts and economists warned.

The early July attacks on Magic Seas and Eternity C occurred in a waterway through which approximately 15% of global trade passes, directly threatening the global economy and international market stability, they said.

Yemen, which imports roughly 90% of its food, medicine and consumer goods through this route, faces the prospect of worsening shortages and price increases due to its near-total dependence on imports.

Political analyst Mahmoud al-Taher described the escalating attacks as "maritime piracy and systematic terrorism targeting the global economy."

The Houthis justify their aggression under the pretext of "supporting Gaza," he told Al-Fassel, even though most targeted vessels have no connection to Israel.

The Iran-backed group temporarily halted attacks in May after pledging not to target US vessels, with the exception of ships they perceive as being linked to Israel, but has since "reneged on their pledges," he said.

"This necessitates decisive intervention from the United States and relevant countries to ensure freedom of navigation," al-Taher said.

The continued maritime assaults have driven shipping and insurance costs up by 300% in some cases, negatively impacting global commodity prices and exacerbating living costs, particularly in developing countries, he added.

While the Houthis link their attacks politically to Gaza to "gain popular sympathy," their real objectives serve "Iran's agenda and creating leverage in the nuclear negotiations," he said.

The group "undermines any peace efforts in Yemen and the region, using resources to fuel the war machine and forced conscription, and obstructing the delivery of humanitarian aid," he added.

'No concern' for humanitarian situation

The Houthis' aggression in the Red Sea has severe economic ramifications, economist Abdul Aziz Thabet told Al-Fassel.

He noted that major shipping companies like Maersk have been forced to reroute via the Cape of Good Hope, tripling shipping costs and extending their journey from Asia to Europe by more than 10 days.

These escalating costs directly impact prices of oil, grains and raw materials, while Yemen faces immediate repercussions as shipping companies grow reluctant to sail to Yemeni ports, Thabet said.

In Yemen, the humanitarian situation continues to deteriorate, with the economy in tatters, weakened private sector, and ongoing salary suspensions, with more than 21.6 million Yemenis requiring urgent humanitarian aid, he said.

The Houthis "show no concern for the humanitarian catastrophe but rather exploit international aid for their political and military purposes and pursue Iran's agenda without any regard for the interests, security and stability of the Yemeni people," Thabet said.