Trump halts strikes on Houthis in deal to secure Red Sea shipping lanes

In a move with significant implications for global trade, U.S. President Donald Trump announced a halt to American airstrikes on Yemen’s Houthi forces, following a reported ceasefire agreement mediated by Oman.

The Iran-aligned Houthis—whose attacks on commercial vessels have severely disrupted shipping through the Red Sea and Bab al-Mandab Strait—have reportedly agreed to stop targeting critical maritime trade routes.

“They said please don’t bomb us any more and we’re not going to attack your ships,” President Trump stated during an Oval Office meeting with Canadian Prime Minister Mark Carney. “And I will accept their word—we are going to stop the bombing of the Houthis effective immediately.”

The agreement, confirmed in a statement by Oman, stipulates that neither the U.S. nor the Houthis will target each other’s assets, including American naval and commercial vessels operating in the region. However, the ceasefire does not appear to include a commitment by the Houthis to halt their missile attacks on Israel.

Red Sea Shipping Routes: A Shifting Landscape

The de-escalation comes after months of heightened tensions, during which the U.S. military launched over 1,000 strikes under Operation Rough Rider, reportedly killing hundreds of Houthi personnel and damaging key infrastructure. The U.S. campaign was initially launched in response to Houthi threats against commercial shipping in solidarity with Gaza following the start of Israel’s war with Hamas in October 2023.

Despite this new ceasefire, shipping operators remain cautious. Risk premiums for Red Sea passages had spiked in recent weeks, and the majority of major carriers continue to reroute their vessels around the Cape of Good Hope.

A recent U.K. Maritime Trade Operations (UKMTO) report confirmed that Houthi forces were forcibly boarding vessels at the port of Ras Isa—even those with UN clearances—highlighting the persistent risks facing maritime stakeholders.

Qatar and Kuwait welcomed the ceasefire, expressing hopes that the agreement will restore security to critical navigation routes. However, Israel responded to a recent Houthi missile strike near Ben Gurion Airport with retaliatory airstrikes on Hodeidah and Sanaa airports—signaling that regional volatility remains high.

The Houthis maintain that their attacks on Israel will continue. “To all Zionists from now on, stay in shelters or leave… your failed government will not be able to protect you,” said Mahdi al-Mashat, head of Yemen’s Houthi Supreme Political Council, via Houthi-run Al Masirah TV.

Industry analysts warn that while the U.S.–Houthi ceasefire may reduce attacks on commercial shipping in the short term, uncertainty persists. Insurers and shipping firms must prepare for a range of scenarios, including renewed hostilities if diplomatic efforts falter or if other regional actors escalate the conflict.

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