Austin: Iran must halt backing of Houthi attacks on global shipping

Iran must stop its support of Houthi attacks on freedom of navigation in the Red Sea, US Secretary of Defense Lloyd Austin during his meeting with Prime Minister Benjamin Netanyahu in Tel Aviv on Monday, as he also pledged continued military support for the Gaza war.

“In the Red Sea, we are leading a multi-national maritime task force to uphold the bedrock principle of freedom of navigation,” Austin said.

“Iran’s support for Houthi attacks on commercial vessels must stop,” he said.

Austin said that his visit marked the fourth time he had arrived since taking office, and the second since Hamas infiltrated southern Israel, killing over 1,200 people and seizing some 250 hostages.

“Israel is a small, tight-knit country, and I know that all Israelis were touched by the vast evil committed by Hamas. 

“I am here to mourn with you for the innocent souls taken from you on October 7th. I am here to stand alongside the families of those still missing in Gaza, including US citizens,” Austin said. 

“America’s commitment to Israel is unwavering. No individual, group, or state should test our resolve,” he said.

“We will continue to provide Israel with the equipment you need to defend your country, Mr. Prime Minister, including critical munitions, tactical vehicles, air defense systems,” Austin said. 

He spoke as mounting attacks by the Iran-aligned Yemeni Houthi militant group on ships in the Red Sea are disrupting maritime trade as leading global freight firms reroute around the Cape of Good Hope to avoid the Suez Canal.

Houthi attacks are "response to Israel's assault on Gaza"

The group said it launched a drone attack on two cargo vessels in the area on Monday, the latest in a series of missile and drone strikes on shipping which it says are a response to Israel's assault on the Gaza Strip.

Several major freight companies -- including MSC -- have begun to sail around Africa instead. According to industry analysts, these detours add costs and delays, which are expected to compound over the coming weeks. About 15% of world shipping traffic transits via the Suez Canal, the shortest shipping route between Europe and Asia.

The war between Israel and Hamas, which began on Oct. 7, has sent shockwaves through the region and threatened to cause a broader conflict.

The Red Sea attacks have shown the ability of Middle Eastern paramilitary forces backed by Iran to upset global trade at a time when Tehran and its proxies are positioning themselves against the United States and Israel.

Combined, the companies that have diverted vessels "control around half of the global container shipping market," ABN Amro analyst Albert Jan Swart told Reuters. "Avoiding the Red Sea will lead to higher cost due to longer travel time," Swart said.

The oil and gas giant BP temporarily paused all transits through the Red Sea, and oil tanker group Frontline said on Monday its vessels will avoid passages through the waterway. These announcements signified the crisis was broadening to include energy shipments. Crude oil prices rose on those concerns on Monday.

"War risk insurance premiums are on the rise naturally, but as vessels get re-routed around Africa, shipping supply will be tighter as cargoes travel longer," Frontline CEO Lars Barstad told Reuters. "That would put rates under a strong upward pressure."

Later on Monday, Norwegian energy group Equinor EQNR.OL said it had rerouted "a few ships" carrying crude oil and liquefied petroleum gas (LPG) away from the Red Sea. The company declined to say how many vessels were affected.

Tanker firm Euronav said it was avoiding the Red Sea until further notice.

The Houthi attacks were also forcing companies to rethink their connections with Israel, with Taiwan's Evergreen Marine saying on Monday it had decided to temporarily stop accepting Israeli cargo.