Houthi Rebels Sink Second Vessel in the Red Sea in a Week

The situation in the Red Sea is escalating. The Houthis have sunk a cargo ship that was transiting near the coast of Yemen towards the Suez Canal.

In the past two days, the container ship Eternity C has become the second vessel to be sunk. Both ships were delivering cargo under contracts with Israeli companies.

The Houthis have demonstrated a willingness to take such radical measures for the first time—previously, they had captured ships but not sunk them.

The main consequence of this will be an increase in shipping costs and a restriction on the number of ships passing through the Red Sea. In his turn, this will inevitably lead to higher prices for goods, primarily consumed by the European Union and Israel.