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US & UK talks on intensifying targeting Houthis in Yemen. Risk is escalation with Iran.

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The US and UK are discussing ways to escalate their attacks on Iran-backed Houthi terrorists operating out of Yemen.

The allies want to step up their campaign without triggering a broader war (with Iran), such as:

  • targeting Iranian resupplies
  • launching more aggressive pre-emptive strikes

Bloomberg with the reports, citing unnamed ‘people familiar with the matter’.

This comes as more and more shipping diverts away from the Suez Canal and Red Sea. Shippers are weighing up the risk of traversing the Red Sea as insurers raise costs. The alternative route, longer and costlier trip around the southern tip of Africa, will, at the margin, drive up delivery times, shipping costs, and inflation.

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