Introduction
The Red Sea Crisis has become a major geopolitical puzzle that is attracting the interest of both international observers and policymakers. This crucial waterway, which runs from the Suez Canal to the Bab el-Mandeb Strait, is crucial for the stability of the region, global trade, and energy security. Recent events, however, have brought attention to the region’s many problems and sparked worries about geopolitical rivalries, maritime security, and territorial disputes.
A complex web of overlapping interests and conflicts involving numerous both state and non-state parties is at the core of the Red Sea Crisis. The security of maritime navigation is one of the main issues, especially in context of the rising tensions and instances of terrorism and piracy.
How Israel is affected by this crisis
The crisis in the Red Sea is a military standoff that started on October 19, 2023, when Israel was targeted by a volley of missiles and armed drones fired by the Houthi movement in Yemen, which is supported by Iran. The Houthis have declared that any shipping with ties to Israel is a target and have staged several captures of civilian-operated cargo ships that are traveling close to the Yemeni coast but there have also been attacks on a number of vessels that don’t seem to be connected to Israel. According to Houthis, they won’t give up until Israel ends its conflict with Hamas.
Local trade and shipping into Israel have been negatively impacted by the Houthi attacks; commercial shipping to the port of Eilat has all but stopped. Rather, commercial ships bound to Israel as well as some not bound for Israel have begun to go Africa, increasing the journey’s duration by approximately three weeks and raising costs. As of December 21st, more than 100 container ships had been redirected to circumnavigate Africa, contributing approximately 6,000 nautical miles to the total journey distance.
This crisis is affecting Egypt in a more severe way. The impacts on the Egyptian economy have been more severe because the country’s economy, that is already struggling with a debt crisis exacerbated by trade disruptions with Israel as a result of the Gaza War, depends almost $9.4 billion on shipping via the Suez Canal.
Impact of Red Sea Crisis on India
India imports energy and works in trade primarily via this route. The frequent interruptions here are forcing exporters to look into other avenues for trade. Strikes have continued for years, but in 2023 they became much more intense as the rebels started deploying anti-ship ballistic missiles.
Trade volume has not changed thus far. Only the cost of transportation has gone up, which affects all the countries that depend on the route. Long-term demand must be evaluated because it is reliant on exports to the US and the EU.
These were the comments of the officials
Impact on global economy
Over fifty percent of the UK’s export companies suffered from Red Sea shipping delays by February 2024, and companies surveyed said that container rental costs had increased by 300%. Businesses then claimed that lack of parts on manufacturing lines and cash flow issues were additional effects of the crisis.
Due to increased risks posed by US-led attacks on Houthi targets in Yemen, Qatar ceased allowing liquefied natural gas tankers to pass through the Bab al-Mandeb Strait. As Europe’s winter season gets closer, an extended suspension of exports has caused concern, since Qatar is the continent’s second-largest supplier of LNG
Here is what JP Morgan a reputed financial institution says about the crisis
https://www.jpmorgan.com/insights/global-research/supply-chain/red-sea-shipping#section-header#1
Attacks by the Houthis have delayed supplies of essential aid to Sudan and increased the cost of humanitarian organizations’ operations in the nation, which is currently the scene of an ongoing war that has left millions of people in danger of starvation.
Conclusion
The Red Sea Crisis is a serious issue that has an impact on numerous nations and has the potential to negatively impact everyone. In order to resolve this issue, we must examine every aspect of it and collaborate to identify solutions.
Cooperation between the nations in the region is also crucial. We can all feel safer in the area if we work together and support one another. This entails exchanging data and collaborating on mutually beneficial projects.
