How Red Sea crisis will be impacted by biggest Houthi attack so far

British and American forces shot down multiple drones and missiles fired by Houthi rebels at international shipping lanes in the Red Sea, officials said.

Defence Secretary Grant Shapps said it had been the largest attack in the region by the militants to date, with drones heading towards HMS Diamond.

“Overnight, HMS Diamond, along with US warships, successfully repelled the largest attack from the Iranian-backed Houthis in the Red Sea to date,” he said in a post on X, formerly Twitter.

“Deploying Sea Viper missiles and guns, Diamond destroyed multiple attack drones heading for her and commercial shipping in the area, with no injuries or damage sustained to Diamond or her crew.”

Britain’s HMS Diamond is understood to have shot down seven of the 18 Iranian-designed drones fired by the Houthis on western warships.

“The UK alongside allies have previously made clear that these illegal attacks are completely unacceptable and if continued the Houthis will bear the consequences,” Mr Shapps added.

The US Central Command said there were no injuries reported in the incident on Tuesday, adding that this was the 26th Houthi attack on commercial shipping lanes in the Red Sea since 19 November.

The Command said that altogether 21 drones and missiles were shot down.

Iranian-backed Houthi militants have stepped up attacks on commercial vessels in the Red Sea in protest against Israel’s war in Gaza. They say their strikes are directed at boats with Israeli interests, however, their targets have few or no links with Israel. Experts say they have targeted ships indiscriminately.

Various shipping lines have suspended operations, instead taking the longer journey around Africa, which adds thousands of miles to journeys.

What this means for the Red Sea crisis

The Houthi rebel attacks on commercial ships in the Bab-el-Mandeb strait between the Arabian peninsula and the Horn of Africa have increased since late November. This campaign imperils one of the world’s crucial – and busiest – trade routes linking Asia and the Middle East to Europe, via the Suez Canal.

The Suez canal handles about 12 per cent of global trade, with half of freight shipped through the canal made up of containerised goods. The route is also used for shipments of oil from the Persian Gulf to Europe and North America.

The threats to this important waterway has already disrupted international trade and could potentially cause a rise in inflation – as well as ignite a wider regional conflict.

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Redirecting ships is expected to cost up to $1m in extra fuel for every round trip between Asia and Europe, while insurance costs are also rising. Global oil prices rose last week as concerns over delays in the Red Sea were exacerbated by reports of disruption to Libya’s biggest oilfield.

The Houthi attacks raise the risk of a US retaliatory strike on Yemen that could ruin a strained ceasefire in the country, and would draw in more countries to Israel’s war in Gaza.

The US, UK and 10 other states have warned the rebels they will face consequences if they continue to attack commercial shipping in the Red Sea. But the militants have ignored these warnings, instead stepping up attacks.

Later on Wednesday, a planned UN security council vote will potentially condemn and demand an immediate halt to the attacks by the rebels.