Continuation of Houthi Threats; Change of Route for Greek Commercial Ships from the Red Sea

Since late November, when Houthi militants targeted ships in the Red Sea under the banner of 'solidarity with Palestinians against Israel in the Gaza war,' commercial shipping companies have been considering changing their routes. The CEO of Star Bulk Shipping Group stated that following recent attacks by the Houthis in Yemen on two of the company's ships, maritime travel through the Red Sea will be halted. According to Reuters, Petros Pappas, CEO of Star Bulk Group, which is headquartered in Greece, said on Tuesday, February 13, that Star Bulk's commercial ships, a publicly traded company registered in the U.S., 'will no longer pass through the Suez Canal, as we are clearly a target for the Houthis.' Pappas mentioned that they separately asked the charterers of the two ships if they could avoid passing through the Suez Canal, which leads to the Red Sea. He noted that one of these two ships had been attacked three times, stating, 'We received recommendations that we should follow the charter contract and send the ships through Suez.' Pappas added, 'While this was happening, the second ship was also passing through Suez. Therefore, we could not divert it. The ship continued on its way and was targeted.' The U.S. Central Command (CENTCOM) reported that the Houthis fired three missiles at the 'Star Nesia' ship, managed by Star Bulk, on February 6. On February 12, the Houthis also fired two missiles at the 'Star Iris,' which is also managed by Star Bulk. This ship was en route to Iran with a cargo of corn from Brazil. This was the first time a ship destined for Iran was targeted. Shipping and insurance sources indicate that Houthi militants in Yemen, who control the most populous areas of the country, have targeted ships that had commercial ties with the U.S., the U.K., and Israel. Pappas stated that war risk insurance rates have increased in recent days. In another development related to this, the U.S. welcomed the release of a new United Nations report on Houthi threats to international shipping. The UN special envoy for Yemen called for immediate action to end the 'dangerous escalation cycle' of tensions in this war-torn country. The U.S. mission once again urged all member states, especially those with direct ties to Iran, to pressure the leaders of the Islamic Republic to rein in the Houthis and stop their illegal attacks. The U.S. stated that rerouting any ship due to Houthi attacks adds about 10 days to their journey and increases the fuel cost of each one-way route between Asia and Europe by one million dollars. Commercial companies are concerned about the consequences of continued tensions in the Red Sea. The International Monetary Fund warned that economic growth in the Middle East in 2023 was lower than expected. A spokesperson for the U.S. State Department stated that the United States firmly defends the security of maritime trade in the Red Sea. A German frigate has set sail to protect commercial ships in the Red Sea. Another commercial vessel was attacked in the Gulf of Aden. The IMF reported that Houthi attacks have reduced traffic through the Red Sea by 30 percent. The U.S. Defense Intelligence Agency confirmed the Houthis' use of Iranian missiles and drones in their attacks. The Houthis again fired missiles at two ships in the Red Sea, supported by the Iranian government. The Houthis targeted a cargo ship bound for Iran; analysts suggest Tehran was aware of the attack. A missile attack on a ship in the Bab el-Mandeb Strait occurred on Monday, with the Houthis being the main suspects. The website 'Politico' noted that the Houthis are seeking to acquire more weapons from the Iranian government. Reuters reported that the Islamic Republic and Hezbollah are assisting the Houthis' attacks in the Red Sea.