The US and UK have indicated the possibility of taking military action against Yemen’s Houthi rebels after they successfully repelled the largest attack on Red Sea shipping to date. In response to the Iran-backed group’s launch of 21 drones and missiles on Tuesday night, carrier-based jets and warships intercepted and shot down the projectiles. The UN Security Council passed a resolution demanding an immediate end to Houthi attacks, endorsing the right of member states to defend their vessels. The Houthis dismissed the resolution as a “political game.”
Despite progress in sovereign debt restructuring, the World Bank highlights uncertainty in Sri Lanka’s economic outlook, particularly in ongoing negotiations with private creditors. The country is projected to grow by 1.7 percent in 2024 and 2.4 percent in 2025, following an estimated 3.8 percent contraction in 2023.
In response to continuous Houthi attacks on Red Sea shipping, the US and UK contemplate military action. The International Chamber of Shipping notes a 20% diversion of container ships from the Red Sea, opting for the longer route around Africa. The Houthis claim to target Israeli-linked vessels in protest of Israel’s actions in Gaza. The situation raises concerns about global trade, the environment, and the broader Middle East conflict. The UK warns of consequences if Houthi attacks persist, with the possibility of military action against Houthi targets in Yemen or even inside Iran. Source – BBC
