For more than two decades, American troops and military assets have operated under constant threat from terrorist organizations and violent non-state actors. In recent months, however, one of these groups has escalated its attacks in a way that threatens not only American lives and interests, but also the global economy.
The U.S. is now striking Houthi targets in Yemen for a clear and necessary reason: to defend international freedom of navigation, protect American military personnel and respond to direct aggression from a designated terrorist organization.
The Houthi movement, formally known as Ansar Allah, is a U.S.-designated Foreign Terrorist Organization with strong ideological and operational ties to Iran. While originally a Yemeni rebel group engaged in a brutal civil war, the Houthis have evolved into a regional proxy force, operating advanced missile and drone capabilities provided by Iran. They are no longer simply a local militia. They are a regional actor engaged in offensive operations across borders — against Israel, against civilian shipping and against the U.S.
Since November 2023, the Houthis have launched more than 50 attacks on international shipping in the Red Sea and Gulf of Aden. These waters, among the busiest and most strategically vital maritime corridors in the world, serve as a key artery for global commerce. Roughly 12 percent to 15 percent of global trade passes through the Red Sea via the Suez Canal.
The Houthis’ missile and drone attacks have forced major shipping companies to reroute vessels around South Africa's Cape of Good Hope. This detour adds an average of 10 to 14 days of transit time, significantly increasing fuel costs and disrupting just-in-time supply chains.
The economic toll is already staggering. Diverting a single large container ship around the Cape of Good Hope can add over $1 million in fuel costs per trip, according to the United Nations Conference on Trade and Development. Insurance premiums for vessels transiting the Red Sea have increased tenfold, adding up to $1 million in overhead per voyage for high-value vessels.
Shipping analysts estimate the cumulative cost to global trade has likely surpassed $10 billion. These costs — from rerouting, fuel and insurance to delays and congestion — are already rippling through supply chains and consumer prices. This is not a distant crisis, but one that touches nearly every economy on the planet.
And these are not symbolic attacks. From November 2023 through January 2024, the Houthis launched missile and drone strikes against more than
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