Houthi Red Sea Attacks: Israel & Shipping Fears

A missile attack on Israel by Iranian-backed Houthi rebels in Yemen on Saturday has raised concerns about potential disruptions to Red Sea shipping routes, as Iran’s influence over the Strait of Hormuz continues to impact global trade.

Houthi Missile Attack on Israel

The Houthis stated they fired a barrage of missiles at “sensitive Israeli military sites” in southern Israel, marking their first such attack since the start of the conflict in the Middle East a month ago. The Israeli military confirmed intercepting a missile launched from Yemen.

Israeli military spokesperson Brig. Gen. Effie Defrin said, “We are preparing for a multifront war.”

Houthis as an Iranian Ally

The Houthis are a key component of Iran’s “Axis of Resistance,” which also includes militant groups in Lebanon, Iraq, and the Palestinian territories. They currently control Yemen’s capital, Sanaa, and much of the country’s north, having been engaged in a civil war since 2014 against the internationally recognized government, which is supported by a Saudi-led coalition.

For a month following U.S. and Israeli attacks on Iran on Feb. 28, the Houthis in Yemen had refrained from engaging in conflict.

Red Sea Shipping and the Global Economy

The re-emergence of Houthi attacks, beginning with a missile strike on Israel, has sparked fears they may begin targeting shipping in the Red Sea. Such actions would further disrupt the maritime industry and the global economy, particularly as the Strait of Hormuz remains largely closed, impacting markets and energy prices.

The Houthis declared they will not permit the U.S. and Israel to utilize the Red Sea for attacks against Iran. “Our fingers are on the trigger,” stated Brig. Gen. Yahya Saree, a military spokesman for the Houthis, in a statement on Friday.

Attacks on vessels by the Houthis would not only drive up oil prices but also destabilize “all of maritime security,” according to Ahmed Nagi, a senior Yemen analyst at the International Crisis Group. “The impact would not be limited to the energy market.”

Saudi Arabia has been sending millions of barrels of crude oil daily through Bab el-Mandeb, located at the southern tip of the Arabian Peninsula, due to the closure of the Strait of Hormuz. The 32-kilometer (20-mile)-wide strait is a crucial passage for global oil trade, with approximately 24% of global container trade also transiting through it on its way to and from the Suez Canal. Disrupting transit through Bab al-Madab would force shipping companies to reroute vessels around the Cape of Good Hope, significantly increasing costs.

Roughly 12% of the world’s trade, including oil, natural gas, grain, and various goods, typically passes through the Suez Canal.

“It would be devastating for so many countries,” Nagi said. “If we see more pressure on the Iranians, or there’s any escalation, the Houthis will jump in harshly.”

Impact on European Energy Supplies

Attacks in the Red Sea will add further strain on energy supplies for the 27-nation European Union, which relies on imported natural gas for power generation and heating. Tankers transporting liquefied natural gas frequently travel through the Red Sea.

From November 2023 to January 2025, the Houthis attacked over 100 merchant vessels with missiles and drones, sinking two vessels and causing the deaths of four sailors, in addition to launching projectiles toward Israel. They justified these attacks as support for Hamas during the war in Gaza.

The U.S. and Israel responded with extensive air strikes against Houthi-held areas in Yemen, resulting in numerous casualties, including a significant portion of the Houthi-allied Cabinet in Sanaa. President Donald Trump halted U.S. strikes after an agreement was reached that led the rebels to cease attacks on ships in the Red Sea.