After the Houthis launched more than 27 attacks on commercial ships passing through the Red Sea since November 19, 2023, using drones and anti-ship missiles, the United States announced “Operation Prosperity Guardian” on December 18, 2023, enlisting the aid of numerous nations to thwart Houthi attacks in the region and safeguard global trade. The economic cost of such an operation to the states on which it is based is called into question in several ways.

Repeated Houthi attacks have led to turmoil in global trade, with global trade volumes falling by about 1.3% from November to December 2023; the number of containers shipped in this region has fallen by more than half; the duration of cargo transportation between East Asia and Europe has increased; imports and exports have in some cases become lower than in November 2022; and the movement of supply chains around the world has been affected.

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