FT: Hopes for safe shipping in Red Sea dashed

International trade and commodity traffic increased after the Houthis said they would stop attacking most ships after a ceasefire between Israel and Hamas. But hopes for a long-term truce and the restoration of safe shipping in the Red Sea were quickly dashed by US President Donald Trump, whose aggressive rhetoric over Gaza and its future has put paid to efforts to secure the world's main trade artery, the Financial Times reports.

US President Donald Trump's proposal to "take control" of Gaza has undermined hopes of reviving the Red Sea route after more than a year of disruption, shipping executives say. Trump's shock announcement this week has raised fears that Yemen's Houthi militant group could resume attacks on commercial vessels crossing the Red Sea.



Jan Rindbo, CEO of shipping group Norden, said Trump's plan added "to the overall picture of unrest and tension in the Middle East and could prolong the Red Sea issue." The high-profile announcement increased "the risk that the Houthis will not just sit back," he added.

According to Lloyd's List Intelligence, the number of ships passing through the Bab el-Mandeb Strait past Yemen rose by 4% to 223 voyages in the week following the Houthi ceasefire announcement. Now this delicate balance is sure to be upset, experts are sure.

Just a week ago, there was light at the end of the tunnel of problems in the Red Sea, but now it has gone out, say representatives of major shipping companies, who had hoped for a quick resolution to the situation and a reduction in shipping costs. Now the bypass routes introduced six months ago to eliminate the threat of attacks are likely to remain in place for a long time, which will affect the entire world the economy.