NYUKF - U.S. to officially relabel Houthis as terrorists soon after retaliatory strikes in Yemen
2024-01-17 04:33:42 ET
The U.S. is expected to redesignate Yemeni Houthi militant group as a foreign terrorist organization on Wednesday, as tensions in the Red Sea and the risk of Israel's war in Gaza spreading in the Middle East escalate.
The move will reverse President Joe Biden's decision nearly three years ago to remove the Iran-backed group from the list over concerns it would further weaken Yemen's economy as it is still struggling under a food crisis that began in 2016. The Trump administration had first added Houthis to the list.
The redesignation follows the U.S. launching retaliatory strikes on Houthi targets in Yemen on Tuesday, in response to months of attacks by the group on commercial ships in the Red Sea.
Multiple companies have been forced to halt their ships from traveling through the Red Sea and divert them around Africa to protect their crews, disrupting global trade and jacking up freight rates .
Egypt, whose revenue from the Suez Canal slumped because of the ship diversions, raised transit fees for the key waterway this week. Traffic volumes through the Suez Canal dropped 30% Y/Y during Jan. 1-11, according to the canal authority's head Osama Rabie.
The latest companies to avoid the key trade route are Japan's Nippon Yusen ( OTCPK:NPNYY ), Kawasaki Kisen ( OTCPK:KAIKY ) and Mitsui O.S.K. Lines ( OTCPK:MSLOY ).
Shell ( SHEL ) on Tuesday suspended shipments through the Red Sea indefinitely, joining BP ( BP ) and QatarEnergy.
More on Red Sea crisis
- Houthi Attacks May Represent A Catalyst For Inflation
- Red Sea Turmoil Is Bullish For Maersk And Peers
- U.S.-owned ship struck by missile off the coast of Yemen
- Oil, shipping stocks rise as airstrikes fail to deter Houthis
- Shipping costs swell further; Houthis launch biggest attack yet
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U.S. to officially relabel Houthis as terrorists soon after retaliatory strikes in Yemen