Dana Peterson breaks down US consumer inflation data, Erika Najarian previews bank earnings, Michael Collins predicts Fed to wait on rate cuts, Norman Roule discusses escalating tensions in the Middle East
The Houthi rebels in Yemen possess sophisticated military capabilities supplied by Iran, posing a risk to maritime security in the Red Sea.
Successful Houthi attacks on commercial vessels or oil tankers in the Red Sea could have significant economic and strategic consequences, disrupting shipping routes.
Deep dives
The Houthi rebels in Yemen pose a threat to maritime security in the Red Sea
The Houthi rebels, based in the western portion of Yemen, have demonstrated relatively sophisticated military capabilities, including missiles and drones. These capabilities are supplied and trained by Iran. While the presence of US and allied forces in the Red Sea has deterred some Houthi actions, there is still a risk of attacks on ships passing through the region, which could have significant consequences for maritime security.
The role of intelligence and potential military action
Intensive and dynamic intelligence collection by US, British, and other allied forces would be crucial in targeting Houthi facilities for potential military action. The presence of Saudi Arabia is limited to intelligence sharing. The economic and strategic impact of a successful Houthi attack on a commercial vessel or oil tanker in the Red Sea would be significant, potentially causing damage and disruptions to shipping routes.
Implications for the broader region and diplomatic efforts
The situation in Yemen, including Houthi aggression, has broader implications for regional stability. There are concerns that a two-state solution diplomatic effort could be jeopardized by Iranian proxies such as the Houthis. The international community must address the challenge of constraining Iran's influence in order to maintain peace and security in the region.
Dana Peterson, The Conference Board Chief Economist, breaks down December's hotter-than-expected US consumer inflation data. Erika Najarian, UBS Large-Cap Banks & Consumer Finance Equity Research Analyst, previews Friday's bank earnings releases. Michael Collins, PGIM Fixed Income Senior Portfolio Manager, predicts the Fed will wait to cut interest rates. Norman Roule, Center for Strategic & International Studies Senior Adviser, discusses the latest in the Middle East as tensions continue to escalate.