China has friendly ties with Iran, the Houthis’ main source of money and weapons, and Chinese vessels are not on the Houthis’ list of targets This creates a geopolitical arbitrage. Whereas American and British firms face insurance premiums of up to 2% of a vessel’s value. Chinese boats are reportedly paying as little as 0.35%, since their risk is lower.
The Houthis are leveraging their geographical location geopolitically now.
This would not have worked so easily if they couldnt justify it with targetting supporters of Israels genocide in Gaza.
We will see if and how the Hothis continue, but with adding an end to strikes on Yemen to their demands and the US, UK, allies and Israeli attacks on Yemen they gained a plausible reason to continue.
This also weakens Egypt as a key western ally/puppet in the region, whose government heavily relies on the income from the Suez channel.
Finally the Houthis managed to regain sympathy in the Arab populations as they stood in for Palestine while most Arab leaders stood by idle or doubled down on supporting Israel.
Gotta love the fashconomist crying about a moneymaking machines from behind a paywall.
