US Ship Operator Confirms No Significant Damage From Strike

Wires carrying comments from the US operator of the Marshall Island-flagged ultramax dry bulker Gibraltar Eagle, which was hit by an 'unidentified projectile' - presumed to be a missile launched by Houthi rebels - 100 nautical miles off the coast of Yemen in the Gulf of Aden.

• States that the 'vessel suffered limited damage to the cargo hold', but that the ship is 'stable and heading out of the area'. Operator confirms that no crew were injured.
• As noted in our earlier bullet (see 'Houthi Strike Highlights US Vessels A Target', 1542GMT), the attack would seem to show the Houthi's following through on their threat that in response to last week's air strikes, US and UK-linked targets would be in their crosshairs.
• It remains to be seen how long the tit-for-tat strikes continue. For the US and its allies, the deterrence activities around the Red Sea are hugely costly. While the Houthi drones cost in the tens-of-thousands of US dollars, the projectiles fired by US and UK ships to down said drones or Houthi missiles can cost upwards of USD1mn a piece.
• As such, the US and its allies will be keen to swiftly degrade Houthi capabilities. However, following many years fighting in the Yemeni Civil War, and continued financial support from Tehran, the likelihood of the Houthis being halted by sporadic airstrikes appears slim.