The US and UK launched around 70 airstrikes on Houthi targets in
Yemen to counter shipping attacks in the Red Sea. The Iran-backed
Houthi group has pledged to retaliate, expanding their campaign
against commercial vessels, with US and UK interests now considered
legitimate targets. This military action has led to a rise in oil
prices by more than 4%, reaching above $80 a barrel. The conflict,
stemming from the Israel-Hamas war, has disrupted global supply
chains, raising freight costs.
Despite the escalating situation, the impact on the global economy
is expected to be limited, according to Ziad Daoud, chief emerging
markets economist at Bloomberg Economics. The strikes targeted
airports, radar installations, and storage sites, aiming to degrade
the Houthis' ability to attack shipping. The international
community, including the Netherlands, Australia, Canada, and
Bahrain, supported the mission.
