{"id":613334,"date":"2024-01-14T00:00:00","date_gmt":"2024-01-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/14\/us-uk-launch-strikes-in-yemen-suez-canal-revenues-down-40\/"},"modified":"2024-01-14T00:00:00","modified_gmt":"2024-01-14T00:00:00","slug":"us-uk-launch-strikes-in-yemen-suez-canal-revenues-down-40","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/14\/us-uk-launch-strikes-in-yemen-suez-canal-revenues-down-40\/","title":{"rendered":"US, UK launch strikes in Yemen + Suez Canal revenues down 40%"},"content":{"rendered":"

Tensions in the Red Sea spill over into conflict:<\/strong> The US and the UK with support from Australia, Canada, the Netherland, and Bahrain carried out air strikes on Houthi facilities across Yemen on Thursday after repeated attacks by Houthi fighters on commercial vessels crossing the Red Sea in recent weeks, US Centcom said in a statement<\/a>. Air strikes continued over the weekend as the UN\u2019s special envoy for Yemen called<\/a> for the \u201cmaximum restraint\u201d from all parties while warning of the risks of a regional conflict.<\/p>\n

The Houthis have vowed retaliation:<\/strong> Retaliation will be \u201cimminent,\u201d senior Houthi leader Mohammed Ali Al Houthi told tens of thousands of people in the Yemeni capital Sanaa who had gathered to protest the bombing campaign, Bloomberg<\/a> reported. Western forces can expect a \u201cfirm, strong and effective response,\u201d another Houthi spokesperson told Al Jazeera.<\/p>\n

Egypt warns of regional escalation: <\/strong>The latest developments are a \u201cclear indication\u201d ofEgypt\u2019s earlier warnings of a spiraling conflict stemming from continued Israeli aggression in Gaza, a Foreign Ministry statement<\/a> said. The ministry called for regional and international coordination to reduce tension in the Red Sea and instability in the region before fighting escalated even further.<\/p>\n

\n

SUEZ CANAL REVENUES PLUMMET- <\/p>\n

Suez Canal revenues since the beginning of the year are down 40% y-o-y<\/strong>, Suez CanalAuthority head Osama Rabie told Kol Youm on Thursday (watch, runtime: 24:33<\/a>). Shipping volumes fell 30% y-o-y during the first 11 days of the year with 544 vessels passing the canal during the period compared to 777 in 2023. <\/p>\n

It looks like things are going to get worse before they get better:<\/strong> Efforts to alleviate thesecurity concerns of international shipping companies \u2014 like fee reductions and other incentives \u2014 have failed, Rabie added. Traffic through the Suez Canal is expected to become even more scarce still after the US and UK militaries advised against all transit through the Red Sea, Reuters<\/a> reported. If the situation continues to escalate, the Suez Canal could \u201ceffectively close for all ships,\u201d Niels Rasmussen, chief shipping analyst at trade group Bimco, told Bloomberg<\/a>. <\/p>\n

Container shipping rates for many key global trade routes have at least doubled<\/strong> from a month ago amid fears of further disruptions in the Red Sea, industry officials told Reuters<\/a> over the weekend. Moving ships away from the Red Sea and around the Cape of Good Hope adds around 10 days and USD 1 mn in fuel costs to trips between Asia and Europe. <\/p>\n

\n

THE OIL MARKET REACTS-<\/p>\n

Houthis \u2018mistakenly\u2019 target oil tanker: <\/strong>A missile strike launched on Friday narrowly missed aPanama-flagged tanker carrying Russian oil, marking the second time the Houthis mistakenly targeted a tanker carrying Russian oil, maritime security firm Ambrey said<\/a>. Oil tankers have begun rerouting away from the Red Sea, in the clearest example of disruption to the oil market. At least three firms \u2014 Torm, Hafnia, and Stena Bulk, who direct around 350 tankers between them \u2014 paused transit through the area, Bloomberg<\/a> reported.<\/p>\n

Remember: Oil tankers have been relatively untouched by Houthis until now<\/strong>, as theHouthis had only attacked non-petroleum vessels. Oil and fuel traffic through the Red Sea managed to hold steady<\/a> in December. <\/p>\n

Market reax: <\/strong>Oil prices climbed 1% on Friday with Brent futures rising as much as 4.3%rightafter the attack, before shedding most of the gains and ending the day up 1.1%. <\/p>\n","protected":false},"excerpt":{"rendered":"

The US and UK attacked a total of 60 targets in 28 locations, including military bases across Yemen<\/p>\n","protected":false},"author":1,"featured_media":613335,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8271],"tags":[72,6984,7143,7117,7360,7103,133],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-613334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-red-sea-watch","tag-enterpriseam","tag-middle-east-politics","tag-osama-rabie","tag-red-sea","tag-red-sea-watch","tag-suez-canal","tag-suez-canal-authority","wpautop","entry"],"acf":{"mongo_id":"0bcf9c2f-316d-432b-8b50-decc78380161","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/1\/774.JPG","photo_position":"above","homepage_title":"","full_issue_title":"US, 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disruptions","rel":"","context":"In "RED SEA WATCH"","block_context":{"text":"RED SEA WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/red-sea-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/1\/1660.JPG?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":614103,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/28\/houthi-strike-on-tanker-carrying-russian-fuel-puts-further-pressure-on-the-egyptian-economy\/","url_meta":{"origin":613334,"position":1},"title":"Houthi strike on tanker carrying Russian fuel puts further pressure on the Egyptian economy","author":"enterpriseam admin","date":"28 January 2024","format":false,"excerpt":"Suez Canal revenues fell 44% y-o-y in January","rel":"","context":"In "RED SEA WATCH"","block_context":{"text":"RED SEA 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