Qatar PM warns of further disruption in global trade after US, UK's escalatory strikes on Houthi Group
The Red Sea blockade is likely to get further extreme after attacks from the US and UK on the Houthi group. The violence is likely to further escalate as the Iran-backed Houthi group is preparing to strike back at the US and UK.
FollowThe violence in the Red Sea region is set to escalatae after the US, and UK increased attacks on the Houthi Group who are acting as Hijackers in the major global shipment route. The Red Sea blockade which began nearly a month ago has caused global trade disruption as major shipment companies refused to pass through the passage due to fear of attack from the Houthis. The Iran-backed militant group managed to attack shipments and hijack dozens of ships that included vessels of the US, UK, India, and Israel as well.
The US and the UK moved into the Red Sea region to avenge the attacks with aircraft carriers. The US Navy and Royal Navy of the UK managed to kill dozens of Houthi rebels in the region so far.
However, Qatar Prime Minister Sheikh Mohammed has warned globalized economies that the trade disruption will further deteriorate after the fresh attacks from the US and the UK.
The Houthis who have suffered losses on all fronts have warned the US and the UK over the recent offenses. Houthis claimed that they were only targeting Israeli ships due to the situation in the Gaza Strip. But now they will target US and UK ships due to the offensive strategy by the duo in the Red Sea region. Brent crude oil price has gone up after the recent escalation and it is expected to move ahead in a similar trajectory due to uncertainty in the Red Sea.
Qatar Prime Minister Sheikh Mohammed has warned that the Liquified Natural Gas (LNG) supply will be the most hit thanks to the conflict. He said, "LNG is, as any other merchant shipments. They will be affected by that. There are alternative routes, those alternative routes are not more efficient, they're less efficient than the current one." The route that most of the shipment companies are taking is all the way through South Africa in the Southern Hemisphere which has increased operational costs and shipment delays by multi-fold
