Operation Prosperity Guardian is a US-led military operation by a multinational coalition formed in December 2023 to respond to Houthi-led attacks on shipping in the Red Sea.
The operation was announced by US Defense Secretary Lloyd J. Austin III, who stated that it was necessary to tackle the "unprecedented challenges" posed by the Houthi attacks on shipping.
The operation aims to ensure freedom of navigation and protect commercial vessels from attacks by Iranian-backed Houthi militants.
The coalition members include the United States, United Kingdom, Australia, Bahrain, Canada, France, Italy, and other countries.
The operation involves naval patrols to respond to and assist commercial vessels transiting the Red Sea and the Gulf of Aden, intending to ensure freedom of navigation for all countries and bolster regional security.
It is designed to provide reassurance to commercial shipping companies that the sea remains safe for commercial shipping.
However, analysts have warned that the operation may face challenges, shipping companies may continue to be disrupted and attacks may continue.
One example of the challenges faced by Operation Prosperity Guardian is Maersk's decision to pause the Red Sea and the Gulf of Aden transits until further notice.
This decision highlights the difficulties for the US-led operation in protecting commercial vessels from attacks by Iranian-backed Houthi militants and the need for a more effective strategy to deter attacks and ensure the safe passage of commercial ships in the region.
What is the Red Sea? What role does it play in global trade? The Red Sea is a significant body of water that serves as one of the world's busiest shipping lanes, connecting the Bab Al-Mandeb strait to the Suez Canal. It is a vital route for global shipping, offering an alternative to the longer journey around the Cape of Good Hope.
The Red Sea plays a crucial role in global trade, with about 12% of global trade passing through it, including 30% of global container traffic. It serves as one of the world's busiest shipping lanes, offering an alternative to the longer journey around the Cape of Good Hope.
The Red Sea's strategic importance lies in its role as a natural border between continents, separating the Middle East and the Far East as well as Europe and Asia.
It is a vital route for maintaining political and economic stability for many countries. The Red Sea's economic significance has increased due to the discovery of large oil reserves and mineral deposits, making it a vital channel for the transport of energy resources.
The attacks by Houthi rebels in the Red Sea have led to disruptions in global shipping, prompting major shipping firms to pause shipments through the area, which has raised concerns about potential impacts on global trade and inflation.
The disruption in the Red Sea has forced shipping companies to divert their vessels around the Cape of Good Hope, leading to increased shipping costs and potential delays in product deliveries.
The attacks have raised fears of a renewed inflation shock for the world economy, as they have the potential to drive up delivery costs for goods and trigger a fresh bout of global inflation.
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