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A question of risk aversion
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09/25/2022
 

Can Iran Stop International Trade Through the Red Sea?

A question of risk aversion

BY WARREN REINSCH

"[T]he Iran-backed Houthis continue to violate international navigation in the Red Sea," the Saudi-led Arab coalition spokesman, Brig. Gen. Turki al-Maliki, said on December 8. He presented photo and video evidence proving Iran was behind the Houthi piracy attacks.

Through its support and leadership, the Houthi rebels have simply become an extension of Iran. Therefore, Iran now controls one of the most critical coastlines in the world.

While we haven’t yet reached the point where the Red Sea is too dangerous to traverse, how much longer until shipping companies decide the risk isn't worth it?

 

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