- What is happening: With Hamas' top leadership largely neutralized and Hezbollah significantly weakened in Lebanon, Israel is now focusing on the Houthi rebel group in Yemen, which has been regularly targeting commercial shipping in the Red Sea and launching missile attacks on Israel.?
- Why it matters: The Houthis' attacks have disrupted Red Sea shipping lanes, and the closure of this trade route partially offsets new ocean capacity, further tightening shipping markets. Intensified Israeli strikes could weaken the rebel group and diminish its ability to disrupt maritime activity in the Red Sea.?
- What happens next: Following the Gaza ceasefire between Israel and Hamas, the Houthis announced that they will limit their attacks on commercial vessels to Israel-linked ships and stop attacking US and UK vessels in the Red Sea area. While this latest announcement is a step toward normalization, it is unlikely to result in an immediate, mass return to the Red Sea trade route.?
