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In Brief: The Real Impact of Houthi Attacks in the Red Sea

September 11, 2024
In Brief: The Real Impact of Houthi Attacks in the Red Sea
In Brief: The Real Impact of Houthi Attacks in the Red Sea

In Brief: The Real Impact of Houthi Attacks in the Red Sea

Allison Minor, Thomas Juneau, Steven Simon, and Kevin McCranie
September 11, 2024
A lot happens every day. Alliances shift, leaders change, and conflicts erupt. With In Brief, we’ll help you make sense of it all. Each week, experts will dig deep on a single issue happening in the world to help you better understand it.Since Hamas invaded Israel, sparking the war in Gaza, on Oct. 7, Iran-backed Houthi rebels in Yemen have launched attacks on over 70 vessels in the Red Sea. These attacks have created a crisis for the global shipping industry – the Red Sea is a key international trade route and a conduit for nearly a third of the world’s container traffic. We asked four experts what the real impact of these attacks has been on global commerce and how actors like the United States and its allies can best counter the Houthis.Read more below.Allison Minor Visiting Fellow Brookings InstitutionHouthi maritime attacks have led to both direct and indirect consequences that are likely to persist for the foreseeable future and will not be easily countered. One of the most significant effects is the cascading economic consequences. Global container shipping costs have nearly quadrupled since Oct. 7 as shippers are forced to use longer and more expensive routes, which strain crew and ship availability, trigger congestion, and disrupt supply chains. This surge in costs is expected to impact global inflation and global domestic product by 0.5-0.7 and 0.4 percent, respectively, with Europe feeling the effects more severely than the United States. These economic disruptions will likely continue as long as the Houthis demonstrate both the capability and intent to attack ships, a situation that is expected to persist even after a Gaza ceasefire is in place.Second, these attacks have eroded confidence in the United States’ ability to preserve the freedom of navigation, dealing another blow to international norms. Finally, the Houthi attacks will likely enable and

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A lot happens every day. Alliances shift, leaders change, and conflicts erupt. With In Brief, we’ll help you make sense of it all. Each week, experts will dig deep on a single issue happening in the world to help you better understand it.Since Hamas invaded Israel, sparking the war in Gaza, on Oct. 7, Iran-backed Houthi rebels in Yemen have launched attacks on over 70 vessels in the Red Sea. These attacks have created a crisis for the global shipping industry – the Red Sea is a key international trade route and a conduit for nearly a third of the world’s container traffic. We asked four

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