Recent allegations from a United Nations report suggesting Yemen’s Houthi rebels collect an estimated $180 million monthly from shipping companies for safe passage through the Red Sea are being met with skepticism from maritime law experts. Stephen Askins, a specialist in maritime law with Tatham & Co, voiced doubts over the feasibility of such substantial payments, describing the report’s figures as “unlikely” and logistically challenging.

According to the UN Panel of Experts on Yemen, the funds allegedly flow through informal networks linked to Houthi leaders, utilizing the hawala money-transfer system. The report asserts that these fees represent a significant source of funding for the Houthis as they intensify threats to shipping in the Red Sea, amid alleged alliances with Iran’s Revolutionary Guard, Hezbollah, and groups like al-Shabaab. This expanding network, the panel claims, provides the Houthis with enhanced financial and logistical coordination to threaten global maritime trade.

Askins, however, questioned the plausibility of the financial scope detailed in the UN findings. He noted that the estimated monthly sum closely resembles what was paid annually to Somali pirates at the height of piracy off Somalia’s coast. “This was done legally, with insurance industry backing,” he explained, underscoring the vast difference in scale. “If anything like this sort of money was being paid by mainstream shipping, I would know,” he stated, adding that shipowners already face high costs when rerouting around the Red Sea but are unlikely to risk penalties by engaging with a proscribed group without insurance coverage.

Drawing on his own experiences with hawala payments, Askins emphasized the logistical difficulties of handling such large sums discreetly. “Cash is heavy and bulky. Moving $10 million in cash is a serious endeavor, weighing roughly 100 kg,” he said. Askins observed that such high-volume, regular transactions through hawala systems would likely raise regulatory alarms, particularly in areas with rigorous financial oversight.

The report’s claims have nonetheless raised serious concerns within the shipping community. Some companies are already rerouting vessels around the Cape of Good Hope to avoid Red Sea passage, though at significant cost. For others, the choice to avoid paying alleged bribes in Houthi-controlled waters has left ships idle, impacting charters and increasing expenses.

Despite skepticism from Askins and others in the industry, the UN maintains that the Houthis have developed an extensive, organized network to exert control over strategic Red Sea routes. U.S. officials are also reportedly monitoring reports of potential Houthi collaborations with groups like al-Shabaab, which would align with Iran’s established proxy strategy to counter Western influence. Direct evidence remains limited, but the prospect of deeper alliances within the Red Sea’s maritime sphere continues to be closely watched by international security agencies.

Yemen’s Houthis challenge the U.S. dominance in the Red Sea, revealing deep fractures in international stability

In a year marked by extraordinary upheavals, the most startling revelation might be the growing influence of Yemen’s Houthis. Once a relatively obscure faction, these rebels have launched a brazen assault on one of the world’s crucial maritime corridors: the Red Sea. Their aggression not only challenges the U.S. but also threatens the very fabric of global maritime stability.

The Houthis’ campaign began in earnest in late 2023, targeting the Bab el-Mandeb strait—a vital chokepoint linking the Red Sea to the Gulf of Aden. Their initial strikes, under the guise of supporting the Palestinian cause, have evolved into a broader strategy to assert dominance in the region. This offensive has been backed by Iran, which has supplied both the technology and expertise needed to conduct such high-impact attacks.

Washington’s response, Operation Prosperity Guardian, aimed to shield shipping lanes with defensive measures from U.S. destroyers and targeted strikes against Houthi capabilities. However, results have been disappointing. The Houthis have successfully disrupted Suez Canal traffic, devastated the Israeli port of Eilat, and recently damaged an oil tanker, raising the specter of an environmental catastrophe. What was once a strategic maritime route carrying up to 15% of global trade has now become a perilous zone of conflict.

The Houthis’ activities underscore two alarming trends. First, they illustrate the decreasing cost of projecting military power. Despite not being a conventional military powerhouse and lacking full control over Yemen, the Houthis have wielded drones and missiles to exert significant influence over crucial sea lanes.

Second, their campaign highlights a troubling synergy among U.S. adversaries. The Houthis benefit from Iranian support and strategic guidance from Hezbollah, while China and Russia exploit the situation to weaken American influence. Beijing and Moscow’s passive encouragement—if not outright support—compounds the challenge for Washington, as they benefit from the distraction and strain on U.S. resources.

Adding to the complexity is America’s reluctance to escalate. The U.S. has avoided more aggressive measures, such as targeting Iranian intelligence ships or Houthi infrastructure, out of fear of exacerbating regional tensions. This cautious approach reflects broader military overstretch and a lack of readiness for a more intensive conflict, leaving the Houthis to dictate the tempo of the confrontation.

This restraint has allowed the Houthis to continue their disruptive actions with minimal repercussions. It signals a worrying trend where international norms, once considered bedrock principles, are being undermined. The global economic impact has been mitigated by adaptive shipping networks, but the precedent set by the Houthis’ actions threatens to erode the freedom of the seas.

As President Joe Biden focuses on other international issues, including the Israel-Hamas conflict, the Houthis’ challenge remains a growing concern. The muddled approach may prove unsustainable, especially with the presidential election on the horizon. The next administration will inherit a precarious situation in the Red Sea, facing the daunting task of restoring American authority and addressing the broader implications of this regional crisis.

The battle for the Red Sea is not just about maritime control; it’s a microcosm of the shifting global order. The Houthis’ defiance highlights the emerging power dynamics and the fragility of the international system, casting a long shadow over future geopolitical stability.

Tim Lenderking Sounds Alarm Over Oil Tanker Crisis, Blames Houthi Attacks and Iranian Support for Escalating Tensions

US Special Envoy Tim Lenderking has issued a stark warning: the ongoing tanker disaster threatens to unleash an environmental catastrophe four times larger than the infamous Exxon Valdez spill. Speaking exclusively with Al Arabiya English, Lenderking painted a dire picture of the situation, describing it as a “ticking time bomb” poised to devastate Yemen and regional ecosystems within just ten days.

The Sounion, a tanker marooned in the Red Sea with its cargo of one million barrels of oil at risk, represents just one of three vessels recently targeted by Iran-backed Houthi rebels. The mounting danger has intensified scrutiny on the Houthis, who Lenderking accused of reckless behavior and endangering not just the region’s environment but global maritime stability.

“Their indiscriminate and reckless actions are not helping Gaza or the Palestinians,” Lenderking argued, directly challenging claims that the Houthi attacks were intended to support Gaza. Instead, he condemned their attacks on commercial ships as violations of international norms, misleadingly justified as strikes against vessels associated with Israel.

Lenderking’s statements underscore growing frustration with Iran’s support of the Houthis, which he claims is stoking regional conflict and impeding peace efforts. “Iran’s playing a key role, I think, to fan the flames,” he said, calling for Tehran to cease its support for the Houthis and halt their destabilizing actions.

Contrary to fears of losing control over the crucial Red Sea corridor—a vital trade route with $1 trillion worth of goods passing through annually—Lenderking expressed cautious optimism. “I don’t think we’ve lost the battle for the Red Sea,” he said, hinting at potential interventions to restore freedom of navigation and counteract the Houthi threat.

The envoy also called for increased regional solidarity against the Houthis, highlighting the broader economic and humanitarian impact of the attacks. “The Suez Canal revenues, crucial for Egypt, have dropped by 50 percent. Houthi attacks are disrupting humanitarian aid to Sudan and affecting countries like Ethiopia and Djibouti,” he noted, urging regional powers to vocalize their opposition.

Amid growing concerns that Russia might be arming the Houthis, Lenderking warned of the grave implications this could have for regional stability. “If the Russians start arming the Houthis, it’s a game changer. It would inflame the conflict and disrupt peace efforts,” he cautioned, emphasizing the importance of Saudi Arabia’s role in negotiations to stabilize the region.

The conflict, now aggravated by the Houthis’ recent escalation following the October 7 attacks in Gaza, has jeopardized a nascent peace process with Saudi Arabia, which had been progressing since April 2022. Lenderking criticized the Houthis for undermining these efforts, while reiterating calls for the release of an international crew held hostage since November 2023.

As the Red Sea teeters on the brink of an unprecedented ecological disaster, Lenderking’s warnings highlight the urgent need for a coordinated international response to prevent a catastrophe that could far exceed previous environmental tragedies.

Greek Tanker Sounion on Fire and Spilling Oil Following Yemen Rebel Assault

In a dramatic escalation of maritime tensions, the Pentagon has raised the alarm over the Greek-flagged crude oil tanker Sounion, which is now leaking oil after being targeted by Yemen’s Houthi rebels. The vessel, still ablaze in the Red Sea, is at the center of a burgeoning crisis with potential global implications.

Last week, the Sounion was struck by multiple projectiles launched from the Houthis, a group aligned with Iran and known for their aggressive stance in the region. The attack occurred off the coast of Hodeidah, Yemen’s key port city. The Houthis, who have been increasingly targeting shipping lanes in solidarity with Palestinians amidst the ongoing Israel-Hamas conflict, claimed responsibility for the assault.

Pentagon spokesperson Air Force Major General Patrick Ryder disclosed that efforts to salvage the Sounion have been obstructed. A third party attempted to send two tugboats to assist the vessel, but the Houthis issued threats of further attacks against them. The tanker, which was transporting approximately 1 million barrels of crude oil, is now leaking into the Red Sea—a development that could spell disaster for the region’s maritime ecosystem.

“These are simply reckless acts of terrorism,” Ryder stated, condemning the Houthis’ actions. “They continue to destabilize global and regional commerce, endanger civilian lives, and threaten the vital marine environment in the Red Sea and Gulf of Aden.” The U.S. military, alongside regional partners, is urgently working to address the environmental risks and support containment efforts.

The ongoing Houthi campaign has already claimed two ships and the lives of at least three crew members over the past ten months. Their aggressive tactics have disrupted global shipping routes, compelling vessel owners to reroute away from the Suez Canal. Houthi military spokesperson Yahya Saree justified the recent attack on the Sounion, alleging that Delta Tankers, the vessel’s operator, had violated a ban on entering “occupied Palestine.”

The Sounion is the third ship operated by Athens-based Delta Tankers to suffer an attack in the Red Sea this month. Although the fire on board was eventually extinguished by the crew, the damage has had a lasting impact. The incident recalls the catastrophic 1979 spill from the Atlantic Empress, which released approximately 287,000 metric tons of oil into the Caribbean Sea—a stark reminder of the potential for disaster from such incidents.

As the world watches with bated breath, the situation continues to evolve, with international stakeholders keenly monitoring efforts to mitigate the environmental fallout and restore stability to one of the world’s most crucial maritime corridors.