Houthis maintain Israeli ban while allowing all other ships to pass

As the first phase of the ceasefire between Israel and Hamas came into effect yesterday, the Houthis of Yemen have provided an update on their Red Sea strategy.

The Houthis said yesterday so long as the ceasefire remains in place, international merchant ships may now transit the Red Sea. However, Israeli-owned and Israeli-flagged tonnage will remain targets, the Houthis said, adding that continued attacks on Yemen by British and American military forces could see ships from those countries targeted too. 

In support of Hamas, the Houthis from Yemen initiated a campaign against merchant ships passing through the Red Sea and the Gulf of Aden, targeting more than 100 ships since November 2023, leading to a major rerouting for most ships heading between Asia and Europe. The Houthis have repeatedly stated their campaign will continue until Israeli forces leave Gaza. 

Major shipowners, especially containerlines, remain cautious about returning to the Red Sea. 

“Houthi representatives have signalled a plan to pause attacks on ships but have not outright announced a full halt. Thus, a lengthy confirmed ceasefire is needed first,” shipping analysts at investment bank Jefferies stated today. 

“At this stage, no immediate route changes are expected, as liner operators are likely to fully evaluate safety and risk concerns. It’s anticipated that other shipping segments may take the lead in addressing these issues before any significant actions are seen in the liner market,” analysis published by broker Braemar today suggested. “War risk insurance premiums for ships operating in the Red Sea have skyrocketed due to the heightened risks. It will take time for insurers to reassess and lower these premiums, even after a ceasefire. The reopening of the Red Sea is likely to be gradual, unfolding over months rather than weeks,” Braemar added.