The Red Sea and the Gulf of Aden, located on the other side of the Gate of Tears, have been one of the most important bodies of water in the world since ancient times. Great civilizations developed on both coasts, profiting from maritime trade. Today it is one of the hottest geopolitical places in the world, full of war bases, pirates and conflicts.
After the outbreak of the war between Israel and Hamas, Iran, as the arch-enemy of the Jewish State, activated its allies in the region. One of these is the Houthi group, which managed to take control of the northern part of Yemen in 2015. Although the civil war there led to one of the most terrible humanitarian disasters in the region known in ancient times as, ironically, Arabia Felicita (Happy Arabia), it was forgotten by world public opinion as it was overshadowed by other events , including the war in Ukraine. But setbacks like to remind themselves of themselves.
The Houthis did this thanks to an arsenal of drones and missiles acquired with Iran’s support, including maneuver and long-range missiles. Yemen’s strategic location on the Red Sea, Bab al-Mandab (Gate of Tears) and the Gulf of Aden gives them the opportunity to hit ships traveling this way. And 12 percent come in here. world trade and 30 percent container ship traffic. Blocking this route here means that the Suez Canal is useless and maritime traffic from the Indian Ocean to Europe will have to bypass Africa.
This mainly affects energy prices, as 12% of electricity passes through the Gate of Tears. world trade in oil transported by tankers and 8 percent LNG.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
