Context: 

The European Union launched a naval mission to protect the Red Sea shipping lane from Yemen’s Houthi rebels.

Red Sea Mission Of EU to Secure Red Sea From Houthi Attacks

• Red Sea Crisis: The EU Red sea mission was launched in response to an attack on the U.S.-owned cargo vessel in the Red Sea region, specifically targeted twice within two hours in the Gulf of Aden.
• The Iran-backed Houthis, who control much of Yemen, have been attacking the vital shipping lane in solidarity with Palestinians in Gaza during the Israel-Hamas war.
• Houthis have been attacking commercial and military shipping in the busy Red Sea, across which 12 percent of global trade travels.

EU Red Sea Mission: Aspides

• Mission Aspides: The EU plans to operationalize a mission named Aspides, meaning “shield” in Greek, within a few weeks, deploying at least four naval vessels.
• Objective of Mission: To Facilitate freedom of navigation on the Red Sea.
• Early Warning System: The operation will send European warships and early warning systems to the Red Sea, Gulf of Aden and surrounding waters.
• Mandate of the Operation: The mission will refrain from engaging in offensive actions on Yemeni territory for an initial duration of one year.

Global Impact of Houthi Attacks

• Decline in Revenues from Suez Canal: Revenues from the Suez Canal have decreased by 40 to 50% since this year.
• Increase in Cost of Trade and Delivery times: Delivery times for shipments between Asia and the EU have increased by 10 to 15 days, and the costs of these shipments have gone up by around 400 per cent.
• Decline in Geopolitical Stability: The Israel-Hamas conflict along with Houthi attacks in the Red Sea has further led to a decline in geopolitical stability and caused unrest in the region. 
• Global Supply Chain Impact: The attacks have disrupted global supply chains, affecting the transportation of goods including energy supplies, food products, and manufactured goods. 
• Impact on India: The attacks have led to costlier imports, higher energy prices, security concerns for Indian merchant vessels and risk for Indian diaspora in conflict-ridden regions.

Source: Hindu