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The Economic Times
The Economic Times
Shariq Khan

Red Sea blockade threat: Why India’s trade faces a wider supply-chain shock

The Red Sea is once again back in focus, with Yemen’s Iran-aligned Houthis stepping up attacks on commercial shipping. The attacks occurred while the US and Iran remained at odds over a deal to end the conflict, with shipping through the Strait of Hormuz facing severe disruption. The US-Iran truce officially expired on Monday. This has again raised concerns that the conflict could drag on and further escalate tensions in the region.

The Houthis had already declared a naval blockade against Saudi Arabia in July and warned shipping companies against using Saudi ports. Reuters has reported that Iran also signalled to its Houthi allies that the Bab el-Mandeb could be closed if the US escalated its attacks on Iran. The development has raised concerns that the Red Sea threat could increasingly become part of the wider Iran-US confrontation and give Tehran another lever over regional shipping.

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