(Bloomberg) -- The Houthi militant group in Yemen said it would resume attacks on Israeli ships for the first time in about two months after demanding the country end a ban on aid entering Gaza.
Most Read from Bloomberg
-
NYC Congestion Pricing Toll Gains Support Among City Residents
-
Open Philanthropy Launches $120 Million Fund To Support YIMBY Reforms
The decision, which the Houthis said would take effect immediately, will likely further deter container ships and tankers — including non-Israeli ones — from sailing through the Suez Canal and southern Red Sea.
The militants began maritime attacks in late 2023, ostensibly in solidarity with Hamas following the outbreak of its war with Israel in Gaza. The assaults led to most Western shippers avoiding the area and going around southern Africa instead — a much longer route for vessels traveling between Asia and Europe. Global freight rates rose.
“Any Israeli ship that tries to defy the ban in the announced operation areas will be targeted,” Yahya Saree, a Houthi spokesman said late on Tuesday. Israeli vessels will be targets until aid, including food and medicine, is allowed into the Palestinian territory, he added.
The Houthis are, like Hamas, backed by Iran and designated as terrorists by the US.
“The Houthi threat to resume attacks on Israel is credible,” said Jack Kennedy, an analyst at S&P Global Market Intelligence. “A resumption of Houthi maritime attacks in the Red Sea and Gulf of Aden would represent a severe risk to all vessels in transit, regardless of affiliation with Israel, due to uncertainties around targeting selection.”
Late last week, the group gave a four-day ultimatum to Israel to allow aid into Gaza. That announcement led to a rise in the shares of shippers such as A.P. Moller-Maersk A/S and Hapag-Lloyd on Monday, with traders anticipating an increase in freight rates. The stocks pared most of their gains on Tuesday.
After a ceasefire in the Gaza conflict started in January, the Houthis suggested they would pause attacks on Israeli as well as US- and UK-linked vessels. All three countries have carried out airstrikes against Houthi targets in Yemen since early 2024 in an effort to stop their assaults on ships and on Israel. Those strikes have been halted since the truce in Gaza began.
Despite the pause in maritime attacks, most major Western shipping companies said they would need more reassurance before sailing through the region again. Traffic through the Suez Canal has changed little since January, according to data compiled by Bloomberg.