The Economist: Houthis cost the global economy $200 billion

According to The Economist, the global economy suffered significant damage in 2024 after Yemeni Houthis attacked Israeli-affiliated ships in the Red Sea. In particular, sea freight prices increased fivefold.

Egypt was the country that suffered the most financial losses. Revenue from the Suez Canal was reduced by $7 billion, a third of its usual income. The United States also spent $5 billion on protecting its ships.

The Houthi attacks have forced Western ships to bypass Africa. The length of the routes used has increased to 6,000 kilometers, and the journey time has increased by 10-14 days. As a result, shipping costs have increased by an additional $ 1 million per trip. Insurance rates in the Red Sea have also increased by 20 times.

China and Russia are reportedly benefiting from the current situation. The Houthis have said they will not attack their ships, which has facilitated the transportation of Russian oil. At the same time, shipping companies have also made significant profits.

Meanwhile, the US and Israeli militaries are responding by striking Houthi military facilities. Western countries, including the UK, are participating in maritime security operations.