WASHINGTON/DAVOS
The United States on Wednesday returned the Yemen-based Houthi rebels to a list of terrorist groups, while business chiefs warned that disruption to shipping in the Red Sea caused by their attacks could affect supply chains for months.
Attacks by the Iran-allied
Houthi militia on ships in the region since November have slowed trade between
Asia and Europe and alarmed major powers - an escalation of Israel's more than
three-month-old war with Palestinian Hamas militants in Gaza.
The Houthis say they are
acting in solidarity with Palestinians and have threatened to expand attacks to
include U.S. ships in response to American and British strikes on their sites
in Yemen.
U.S. officials said the
"Specially Designated Global Terrorist" (SDGT) listing was aimed at
cutting off funding and weapons the Houthis have used to attack or hijack
ships.
A Houthi spokesman told
Reuters that attacks on ships heading to Israel would continue and the
designation would not affect its position.
Iranian Foreign Minister
Hossein Amirabdollahian, whose country backs Hamas in its war with Israel, said
an end to the war in Gaza was needed to remove the threat to shipping.
"The security of the Red Sea is tied to the developments in Gaza, and everyone will suffer if Israel's crimes in Gaza do not stop ... All the (resistance) fronts will remain active," Amirabdollahian said at the World Economic Forum in Davos.
US president Joe Biden
delisted Houthis from the global terror list weeks after coming into office.
Shipping giant Maersk and
other large shipping lines have instructed hundreds of commercial vessels to
stay clear of the Red Sea, sending them on a longer route around Africa or
pausing until the safety of vessels can be assured.
"It's one of the most
important arteries of global trade and global supply chains and it's clogged up
right now," Maersk CEO Vincent Clerc told Reuters Global Markets Forum in
Davos, adding that disruption would probably last at least a few months.
Banking executives are worried
the crisis might create inflationary pressures that could ultimately delay or
reverse interest rate cuts.
Freight rates have more than
doubled since early December, according to maritime consultancy Drewry's world
container index, while insurance sources say war risk premiums for shipments
through the Red Sea are also soaring.
The attacks target a route
that accounts for about 15% of the world's shipping traffic and acts as a vital
conduit between Europe and Asia. Japanese trading house Sumitomo Corp was the
latest company caught up, saying it had some cargoes in the Red Sea that were
affected by the situation.
The attacks are causing major
disruption to Italian ports and fueling fears that a prolonged crisis may force
companies to move traffic away from the Mediterranean more permanently.
Italy wants fellow European
Union members to agree next week to create an EU maritime security mission so
that it can become operational as soon as possible, Italian Foreign Minister
Antonio Tajani said on Wednesday.
The alternative shipping route
around South Africa's Cape of Good Hope can add 10-14 days to a journey when
compared to a passage via the Red Sea to the Suez Canal.
Prolonged attacks by the
Houthis on ships would lead to a shortage of tankers, the CEO of Saudi oil
giant Aramco said.
"If it's in the short
term, tankers might be available ... But if it's longer term, it might be a
problem," CEO Amin Nasser said in an interview in Davos.
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