The Strategist

EC warns of consequences of Houthi attacks on ships in Red Sea

01/16/2024 - 09:23

Houthi attacks in Yemen could lead to faster inflation and higher energy prices in Europe, according to European Commissioner for Economic Affairs Paolo Gentiloni, cited Bloomberg.

The U.S. National Archives
The U.S. National Archives
"We know that this year started with slow growth, good news on the labor market, but growing concerns about the risks caused by geopolitical tensions, especially what is happening in the Red Sea," the Commissioner stated.

Gentiloni demanded that the issue be closely watched. He claims that while the impacts of the attacks might not be apparent right now, the battle between the United States, Britain, and the Houthis could have an impact that "materializes in the coming weeks."

The US and the UK conducted 23 airstrikes on Yemen targets earlier on January 12. The attacks were a response to the danger to freedom of navigation, as US President Joe Biden stated.

Later in the day, the U.S. imposed sanctions on the Chinese company Cielo Maritime Ltd and Global Tech Marine Services Inc of the UAE, as well as the vessels Mehle, Sincere 02, Molecule and Fortune Galaxy, which were "involved in the export of Iranian commodities for the benefit of the ruling Shiite movement Ansar Allah (Houthis) in northern Yemen".