Global trade faces 'two-front crisis' as Trump's war sparks second strait blockade

The Yemeni Houthis announced early Monday they would impose a “complete ban” on Israeli sea vessels from passing through the Red Sea, a partial blockade that risks hitting global trade with a “two-front crisis” as traffic through the Strait of Hormuz remains disrupted, several outlets reported.

“We declare a complete ban on enemy navigation in the Red Sea and we consider any Zionist movements to be military targets for our forces,” said Houthi spokesman Brig Gen Yahya Al Saree in a televised statement released on Monday, according to the United Arab Emirates news outlet The National.

“We will respond to escalation with escalation and our operations will intensify in line with the battle and in conjunction with the axis of jihad and resistance."

The announcement comes in response to Israel’s strikes on Iran Sunday, itself a response to Iranian strikes on northern Israel as retaliation for Israel’s siege on Beirut, Lebanon.

While not as critical to global trade as the Strait of Hormuz, the Red Sea is still a major shipping waterway, with around 12% of global trade passing through the channel, “including 30% of global container traffic,” according to The Guardian. Together, disruptions to both shipping waterways would likely further exacerbate supply shocks sparked by President Donald Trump’s deeply unpopular war against Iran.

“The two waterways together carry an estimated 30% of global container shipping and approximately 22% of the world's seaborne oil supply, according to analysis by The Middle East Insider,” reads a report from Insurance Business Magazine. “A combined disruption places an estimated US$10 billion per day of global trade at risk.”