Russia & China Strike Shipping Deal With Houthis To Ensure Safe Vessel Transits, Report Says 

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by Tyler Durden
Friday, Mar 22, 2024 - 11:20 PM

According to Bloomberg's sources, Russia and China have sealed a deal with Iran-backed Houthis to allow their commercial vessels to transit the Red Sea and Gulf of Aden without fear of drone and or missile attacks. 

One of the sources said China and Russia reached a deal with diplomats in Oman with Mohammed Abdel Salam, one of the Houthis' top political leaders. They said the safe passage of vessels is in exchange for the Houthis' political support at the United Nations Security Council. 

Bloomberg noted, "It's not entirely clear how that support would be manifested, but it could include blocking more resolutions against the group." 

Since November, Houthi rebels have repeatedly attacked vessels in the Red Sea. Rebels assert that their attacks are aimed only at ships connected to Israel, demonstrating their support for the Palestinians amid the ongoing Gaza conflict.

In response to the Red Sea crisis, the Biden administration launched Operation Prosperity Guardian, a military operation led by the US and other allied countries to protect the critical shipping lane. However, months later, the operation failed to protect ships. Furthermore, the US and UK have launched bombing raids on Yemen and other Middle Eastern countries to fight back against Iran-backed terror groups. 

"China and Russia are deepening their strategic alliance with Iranian-backed terrorists. It's a further sign of an emerging new world disorder that threatens freedom of navigation, commerce, transit, and communications," said David Asher, a senior fellow at Hudson Institute, who commented on the Bloomberg report. 

Asher continued: "No one should doubt that Putin and Xi are increasingly coordinating their moves with Tehran while the US embraces appeasement, including via releasing billions of dollars to the Iranians with no substantive result to American interests, power, and prestige."

In a recent note titled "The Weaponization Of Crude Could Trigger The Next Financial Shock," Asher warned that "Iran is preparing for an oil war—and markets ignore the growing risks."