West warns Red Sea rebels amid growing fears of wider conflict

The US is warning Yemen’s Houthi rebels that they risk military strikes if they continue to attack cargo ships in the Red Sea, as escalating tensions across the Middle East fuel fears of a wider regional war.

Australia joined the US and 10 other countries yesterday to condemn the ‘‘illegal, unacceptable, and profoundly destabilising’’ attacks that have disrupted global trade.

‘‘Let our message now be clear. We call for the immediate end of these illegal attacks and release of unlawfully detained vessels and crew,’’ the statement said.

It came just hours after at least 84 people died in mysterious twin blasts in Iran and as the Lebanese Hezbollah terror group vowed revenge for the assassination of a Hamas leader in Beirut, threatening to bring the Middle East closer to the brink of a regional war.

The Albanese government issued a fresh plea yesterday for Australians to leave Lebanon immediately, saying it had ‘‘serious concerns over the security situation and the risk of it escalating rapidly’’.

‘‘We continue to urge Australians in Lebanon to leave now while commercial flights remain available,’’ acting Foreign Minister Mark Dreyfus said. ‘‘If armed conflict increases, it could affect wider areas of Lebanon and close Beirut airport.’’

Oil prices rose 3 per cent in response to the Middle East turmoil and global shipping costs continued to soar. Australian grape growers fear further delays to exports already caught up by industrial action at ports, and livestock exporters are closely monitoring the situation because the Red Sea services important Middle East markets.

Former naval warfare officer and expert at ANU’s National Security College Jennifer Parker said it was increasingly likely that a fresh Houthi attack would be met by US strikes in Yemen, although the events in Beirut and Iran would give American officials pause for thought. ‘‘There is a desire from the US and Iran not to escalate to full-scale conflict,’’ she said.

Ms Parker said that in 2016, US forces had destroyed Houthi radar sites after missile strikes on an American warship. ‘‘The fact that the US hasn’t done that this time is interesting, and I wonder if that joint statement is a precursor to the US taking offensive action,’’ she said.

The Albanese government rejected a pre-Christmas US request to send a warship to the Red Sea to help protect shipping, citing a need to prioritise the Indo-Pacific region.

However, military sources indicated that the navy’s lack of crews and anti-drone capabilities had weighed heavily on Canberra’s thinking.

Yesterday’s statement was signed by Australia, the US, the UK, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands and New Zealand. ‘‘The Houthis will bear the responsibility of the consequences should they continue to threaten lives, the global economy and free flow of commerce in the region’s critical waterways. These attacks threaten innocent lives from all over the world and constitute a significant international problem that demands collective action,’’ it said.

US forces have shot down dozens of missiles and drones, and sank three Houthi boats last weekend after they fired at American helicopters.

US media reports that White House officials are considering strikes against Houthi missile and drone bases in Yemen, in recognition that the maritime taskforce may not be enough to deter ongoing attacks.

‘‘As the President [Joe Biden] has made clear, the United States does not seek conflict with any nation or actor in the Middle East, nor do we want to see the war between Israel and Hamas widen in the region,’’ White House National Security Council spokesman John Kirby said.

‘‘But neither will we shrink from the task of defending ourselves, our interests, our partners, or the free flow of international commerce.’’

Shipping data shows that container ships travelling to and from Asia to Europe and North America are avoiding the shorter route through the Red Sea and Suez Canal, instead sailing around Africa to avoid the rebels’ drone and missile attacks and hijack attempts.

Asia-to-north Europe shipping rates more than doubled to above $US4000 ($5950) per 40-foot container this week, and Asia-to-Mediterranean prices climbed to $US5175, according to Freightos, a booking and payments platform for international freight.

Some carriers had announced rates above $US6000 per 40-foot container for Mediterranean shipments starting mid-month, and surcharges of $US500 to as much as $US2700 per container could make all-in prices even higher, Freightos’ head of research, Judah Levine, said.

Many container shipping lines have elected to avoid the Red Sea route, following a wave of attacks, instead sailing their fleets thousands of kilometres around Africa.

The channel usually handles about 12 per cent of the world’s commerce. The attacks have added to the risks of a regional expansion of Israel’s war with Hamas in Gaza, and driven up cargo rates around the world.

Egypt’s Suez Canal connects the Red Sea to the Mediterranean Sea and is the fastest way to ship fuel, food and consumer goods from Asia and the Middle East to Europe. Shippers use the route to ferry about one-third of all global container cargo.

The attacks are delaying the delivery of products destined for many companies because the Suez route is used by the likes of IKEA, Walmart and Amazon.

As of Wednesday, more than 180 container ships and other vessels had been rerouted around Africa’s southern Cape of Good Hope to avoid the attacks – adding anywhere from seven to 20 days to their voyages, according to supply chain management technology company Project44.

Ports Australia chief executive Mike Gallacher said the Red Sea conflict would add to delivery delays and higher shipping costs for Australian consumers, but there had been little direct impact on this country’s port operators.

He said the biggest source of disruption was goods shipped to Singapore via the Red Sea, which were then transferred to smaller cargo vessels and sent to Australia.

‘‘Most of our bulk materials go to Asia and container ports are not seeing any effect. Vessels are still on time,’’ Mr Gallacher said. ‘‘There are no alarm bells at this time.’’

WITH BLOOMBERG, REUTERS