Iranian-backed Houthi rebels in Yemen disrupted global maritime trade in late 2023 by launching drone and missile attacks against commercial shipping in the Bab-el-Mandeb strait. These low-cost strikes forced major shipping firms to bypass the Red Sea, routing vessels around the Cape of Good Hope and increasing Far East-to-Europe shipping costs by 15 percent.
This vulnerability highlights how modern geopolitical competition has undermined multilateral security frameworks, as European analysts wrote regarding the loss of guaranteed free access to these straits. While Tehran leverages regional proxies, Turkey exploits the instability to challenge Israeli maritime energy projects. Meanwhile, the strategic focus shifts to the Indo-Pacific, where the Strait of Malacca remains a critical vulnerability for East Asian economies. To counter Beijing's regional influence, India is constructing a multi-billion-dollar military base on Great Nicobar Island to monitor Chinese supply lines. This project aligns with Washington's efforts to repair bilateral ties with New Delhi through the Quad alliance.
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