(Bloomberg) -- The Yemen-based Houthis signaled a pause in their months-long attacks on commercial ships following a ceasefire deal between Israel and Hamas.
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In his first comments since the Gaza truce accord was announced on Wednesday, Houthi leader Abdulmalik Al-Houthi said that the group would follow the agreement, suggesting a halt in its campaign on vessels and on Israel. Still, he left the door open for resuming the attacks, which would likely mean shipping firms will remain very cautious of returning to the Red Sea.
“We will continue to follow the stages of implementing the agreement,” Al-Houthi said in a speech Thursday. “Any Israeli breach, massacre, or siege — we will be immediately ready to provide military support to Palestinians.” He didn’t clarify if he was referring to attacks on Israel or on ships.
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Ship owners and insurers have been waiting for the Houthis to signal their intent in the southern Red Sea and Gulf of Aden, following months of missile and drone firings that have sunk some vessels, damaged many and forced a large majority to avoid the crucial trade route altogether. The Houthis and Israel have also been hitting each other directly.
The US-supported Gaza agreement is meant to start on Sunday, though that depends on Israel’s security cabinet approving it on Friday.
The Houthis, an Islamist group that’s designated as terrorists by the US and is backed by Iran, started their attacks in late 2023 in solidarity with Palestinians as the Israel-Hamas war raged. They said they’d continue until fighting ended.
Most Western-linked container ships have over the past year chosen to take the much longer route around southern Africa when sailing between Asia and Europe, and kept clear of the Red Sea. That’s squeezed global shipping capacity, lifting freight rates and boosted the earnings of carriers like Mitsui OSK.
Container-shipping giants A.P. Moller Maersk A/S and Hapag-Lloyd AG last year announced a vessel-sharing partnership for the alternative route.
The shipping disruptions are underscored by Egypt saying its revenue from the Suez Canal dropped by at least $7 billion, or around 60%, last year.
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