Cost Increase for Israel and Shipping Companies Due to Houthi Actions; International Coalition for Red Sea Security

As shipping sources reported that the cost of transporting goods to Israel via sea has increased in recent days, the U.S. announced the formation of a new naval force to protect ships passing through the Red Sea. Reuters reported on Monday that the exit of some shipping lines and additional costs for transportation companies have impacted Israel's supply chain amid the Gaza war. According to an analysis of data from the global freight transportation database Freightos, the ocean freight rate to Israel from various Chinese ports for a 40-foot container rose from $1,975 in late November to over $2,300 by December 21. U.S. Defense Secretary Lloyd Austin stated on December 18 that 'the Red Sea is a vital waterway that facilitates international trade. The escalation of Houthi attacks from Yemen threatens the free flow of trade, endangers innocent sailors, and violates international laws. This is an international challenge that requires collective action, so I am announcing today the formation of the 'Guardian of Prosperity' group and operation, which is an important multinational security initiative.' Israel, whose economy relies on maritime trade, announced in October that it would compensate ships damaged by the war, while Houthi militants supported by the Islamic Republic have increased their attacks on vessels in the Red Sea, claiming they are responding to Israeli attacks on Gaza. Currently, three U.S. warships are operating daily in the Bab el-Mandeb Strait to help deter and respond to Houthi attacks. However, the U.S. Central Command reported that on December 18, around 9 AM local time in Sana'a, Houthi militants attacked commercial ships in the Red Sea twice, targeting the oil tanker 'Swan Atlantic' with an attack drone and an anti-ship ballistic missile in the first attack, and attempting to strike the cargo ship 'Clara' in the second attack, but no damage was reported to either vessel. Meanwhile, Senator Mitch McConnell, the Senate Republican leader, referred to the recent Houthi attacks on commercial and military ships in the Red Sea as a sign of the increasing audacity of Iran's proxy forces and warned of the serious threat these incidents pose to the global economy. Hossein Amir-Abdollahian, the Iranian Foreign Minister, recently claimed that Iran does not have proxy groups in the region. However, the U.S. believes that the Tehran regime supports the positions and actions of these groups, including the Houthi rebels, and has provided them with weapons. The Houthi movement is a political and armed movement of Shiites in Yemen that emerged in the 1990s in northwestern Yemen. The Iran-backed Houthis currently control Sana'a, the capital of Yemen, and parts of its northern regions, temporarily choosing the city of Aden as their capital. The Houthis are currently listed as terrorist groups by Saudi Arabia, the United Arab Emirates, and Malaysia. The Trump administration designated the Houthis as a terrorist group in January 2021 and imposed sanctions on them, but with the new Biden administration, these groups were removed from the terrorist list and the sanctions were lifted. Britain shot down an attack drone over the Red Sea. Houthi missile attacks in the Red Sea; a Liberian-flagged ship caught fire. Verification | Does the U.S. have the right to defend itself and others against Houthi attacks in the Red Sea? The U.S. is seeking to provide more support for commercial ships in the Red Sea. The U.S. sanctioned a financial network supporting the Houthis in Yemen.