Escalating Tensions: The Houthis and Israel's Conflict Poses Ongoing Threats to Maritime Trade

The Houthi rebels in Yemen are starting to share their viewpoint on the recent truce deal regarding the red Sea, which was initially announced by the White House. It seems that international shipping might still encounter dangers in these waters.

On Tuesday, President Trump declared that the Houthis had “surrendered” following a prolonged bombing campaign by U.S. and Israeli forces. He mentioned that they would cease attacks on U.S. vessels, and in return, american airstrikes in Yemen would halt immediately.

However, shortly after Trump’s announcement, Houthi media outlets made it clear that their operations against Israel would persist as retaliation for ongoing military actions in Gaza. Houthi spokesperson mohammed Abdulsalam reiterated on Wednesday that this new agreement with Washington wouldn’t change their stance towards Israel at all.

If the Houthis plan to continue targeting Israel includes assaults on Israeli shipping routes,then this ceasefire may not alleviate risks for commercial ships flying foreign flags. The group has previously attacked vessels linked to Israel but has also targeted ships without any direct ties—sometimes even those associated with allies of the Houthis themselves. This pattern raises concerns that neutral vessels could be mistakenly or intentionally labeled as “Israeli,” putting them at risk.

This uncertainty has led major shipping companies to consider delaying their return to Red Sea routes for several months post-conflict due to potential costs and disruptions involved in rerouting global supply chains. Switching from a route around Cape of Good Hope back to Suez—and possibly back again if hostilities resume—could be financially burdensome.

Experts believe when container traffic eventually resumes along the shorter Red Sea path,we might see a familiar scenario emerge: overcapacity leading to slim profit margins within global ocean freight markets.

“The key factor influencing freight rates may soon reach its limit,” noted Peter Sand from Xeneta on social media. “If navigating through the Red Sea becomes safe again… we could witness a shift from current tightness back into an overcapacity situation which typically drives down rates.”