Houthi strikes hit four commercial vessels in 48 hours; oil prices jump, shipping giants halt routes as world braces for severe supply-chain shock
Dateline: New York | 03 December 2025, Asia/Kolkata
Summary: The Red Sea crisis intensified sharply this week after a series of Houthi-claimed missile attacks struck four international cargo ships near the Bab-el-Mandeb Strait, triggering global alarm. The UN Security Council has called an emergency meeting as the U.S., U.K., France, and regional navies increased deployments. Shipping giants Maersk, MSC and Hapag-Lloyd have halted Red Sea operations, raising fears of massive delays, soaring freight costs and disruptions across oil, electronics, automotive and food supply chains.
A crisis with global trade implications
The Red Sea—one of the world’s most important maritime corridors—has once again become a flashpoint after coordinated attacks on multiple commercial vessels over two days. The Bab-el-Mandeb chokepoint is responsible for nearly 12% of global trade and over 30% of worldwide container traffic routed through the Suez Canal. Any disruption in this corridor reverberates across continents within hours.
Satellite images reviewed by maritime observers show at least two vessels sustaining visible hull damage, while another ship reported on-deck fires after being struck. No casualties have been officially reported, but crew members on one tanker were evacuated after onboard explosions.
UN Security Council enters crisis mode
The United Nations officially announced an emergency Security Council session, citing “escalating threats to global maritime security, energy stability and humanitarian supply chains.” Diplomats say the meeting will focus on de-escalation measures, coordinated naval security, and possible sanctions if attacks continue.
UN officials warned that the Red Sea corridor, if destabilised further, could trigger “a cascading global economic shock” similar to or worse than the pandemic-era shipping crisis.
Who is behind the attacks?
Yemeni Houthi forces publicly claimed responsibility for two of the four attacks, saying the vessels were “linked to hostile economies.” However, intelligence sources from multiple countries are still assessing whether other regional groups may have participated or supplied targeting inputs.
Analysts caution that although the Houthis have increased their missile and drone capabilities, the pattern of this week’s strike sequence suggests a higher level of coordination.
Oil markets react instantly
Global oil prices surged nearly 4% within hours of the first attack, with Brent crude climbing above $96. Traders cite fears of tanker rerouting, increased insurance premiums, and potentially reduced flows through the Suez Canal. Energy analysts warn that if hostilities continue, oil could breach the $100 mark imminently.
Gas markets also showed volatility, especially in Europe, which remains sensitive to external supply disruptions.
Shipping lines suspend Red Sea routes
Three of the world’s largest container companies—Maersk, MSC and Hapag-Lloyd—announced immediate suspension of Red Sea transits. Shipowners are now rerouting vessels via the Cape of Good Hope, adding 10–14 days to journey times and raising freight costs by up to 40%.
Trade analysts say the rerouting will hit supply chains in India, Europe, China and the Middle East particularly hard, leading to shortages of automotive parts, electronics, chemicals and medical supplies.
Naval deployments intensify
The U.S. Navy’s Fifth Fleet, along with British and French frigates, has increased patrols in the Red Sea. Saudi Arabia and Egypt are monitoring the situation closely, while Israel remains on heightened alert and has redirected two naval assets closer to the strait.
Indian Navy officials confirmed that two destroyers, including INS Chennai, have been moved closer to the Gulf of Aden to ensure safe passage for Indian-flagged cargo ships.
Insurance costs skyrocket
War-risk premiums for vessels crossing the Red Sea climbed sharply, with some insurers temporarily halting new coverage. The increase in premiums may make the route financially unviable even if ships attempt guarded passage.
Logistics companies warn that costs will ultimately be transferred to global consumers—raising prices for fuel, electronics, packaged goods and retail shipments.
How the attacks unfolded
Initial reports indicate:
• A missile struck a Hong Kong-flagged container ship 32 nautical miles west of Mokha.
• A Liberian-flagged tanker caught fire after a drone impact.
• A Greek-owned bulk carrier reported “near misses” from multiple projectiles.
• A UAE-linked vessel issued a distress call after sustaining structural damage.
All attacks were concentrated in a tight zone—suggesting that ships were targeted through advanced tracking technology.
Risk to India’s exports and imports
India heavily depends on the Red Sea–Suez Canal route for trade with Europe and North Africa. Nearly 60% of India’s trade with Europe flows through the corridor. Exports of pharmaceuticals, textiles, auto components and electronics could face severe delays.
Importers may encounter rising prices for crude oil, edible oil, fertilisers, and machinery. The Federation of Indian Export Organisations (FIEO) has urged the government to secure guaranteed naval escorts.
Regional geopolitical tensions flare
Iran condemned Western naval deployments, calling them “provocations.” The U.S., on the other hand, accused Iran of enabling proxy attacks in the region. The Red Sea crisis now risks spilling into broader geopolitical fault lines.
Middle East observers warn that miscalculation at sea could trigger wider conflict involving multiple nations.
European and Asian nations issue travel and shipping advisories
Germany, Japan, India, South Korea and Australia have issued maritime advisories urging commercial vessels to stay clear of high-risk zones. Several oil and gas companies have paused tanker movements temporarily.
How long could the disruption last?
Experts outline three possible scenarios:
1. Short-term escalation but rapid stabilisation
Naval coalitions secure a temporary ceasefire corridor; shipping slowly resumes with heightened escorts.
2. Prolonged disruption
Attacks continue sporadically, forcing long-term rerouting and pushing global inflation higher.
3. Regional spillover
The crisis escalates into direct confrontation between world powers, severely affecting global trade for months.
Global businesses prepare for impact
Major corporations, including automobile and electronics manufacturers, are preparing contingency plans. Delayed components could halt production lines in India, Germany, Japan and the U.S. Retail giants may face shortages ahead of the holiday season, and logistics companies warn of potential port congestion.
UN appeals for restraint
The United Nations, Red Cross and several humanitarian organisations are also concerned about aid shipments to East Africa, Yemen and Sudan—regions already suffering from hunger, conflict and drought.
UN Secretary-General appealed for “immediate de-escalation and guaranteed humanitarian passage,” calling the situation a “direct threat to global stability.”
Conclusion: The world watches a fragile corridor with rising anxiety
The Red Sea crisis of 2025 is emerging as one of the most serious maritime threats in recent years. With global trade, oil supply and regional security at stake, the coming days will determine whether the world can avoid a full-scale maritime confrontation—or if the fragile corridor will plunge deeper into turbulence.
For now, the global economy stands on edge, with supply chains stretched, markets anxious, and diplomatic tensions climbing.
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