Israel launches airstrikes targeting Yemen's Houthi rebels; Houthis hit back with missiles
The attacks came after an attack on Sunday targeting a Liberian-flagged ship in the Red Sea that caught fire and took on water, later forcing its crew to abandon the vessel.
Suspicion for the attack on the Greek-owned bulk carrier Magic Seas immediately fell on the Houthis, particularly as a security firm said bomb-carrying drone boats appeared to hit the ship after it was targeted by small arms and rocket-propelled grenades. The rebels' media reported on the attack but did not claim it. It can take them hours or even days before they acknowledge an assault.
A renewed Houthi campaign against shipping could again draw in U.S. and Western forces to the area, particularly after President Donald Trump targeted the rebels in a major airstrike campaign.
The ship attack comes at a sensitive moment in the Middle East, as a possible ceasefire in the Israel-Hamas war hangs in the balance and as Iran weighs whether to restart negotiations over its nuclear program following American airstrikes targeting its most-sensitive atomic sites during an Israeli war against the Islamic Republic. Israeli Prime Minister Benjamin Netanyahu also was travelling to Washington to meet with Mr. Trump.
Israeli strikes target Houthi-held ports
The Israeli military said it struck Houthi-held ports at Hodeida, Ras Isa and Salif, as well as the Ras Kanatib power plant.
'These ports are used by the Houthi terrorist regime to transfer weapons from the Iranian regime, which are employed to carry out terrorist operations against the state of Israel and its allies,' the Israeli military said.
The Israeli military also said it struck the Galaxy Leader, a vehicle-carrying vessel that the Houthis seized back in November 2023 when they began their attacks in the Red Sea corridor over the Israel-Hamas war.
'Houthi forces installed a radar system on the ship and have been using it to track vessels in the international maritime arena to facilitate further terrorist activities,' the Israeli military said.
The Bahamas-flagged Galaxy Leader was affiliated with an Israeli billionaire. It said no Israelis were on board. The ship had been operated by a Japanese firm NYK Line.
The Houthis acknowledged the strikes, but offered no damage assessment from the attack. Their military spokesman, Brigadier General Yahya Saree, claimed its air defense forces 'effectively confronted' the Israelis without offering evidence.
Israel has repeatedly atacked Houthi areas in Yemen, including a naval strike in June. Both Israel and the United States have struck ports in the area in the past — including an American attack that killed 74 people in April — but Israel is now acting alone in attacking the rebels as they continue to fire missiles at Israel.
Israel's Defence Minister Israel Katz threatened further strikes.
'What's true for Iran is true for Yemen,' Mr. Katz said in a statement. 'Anyone who raises a hand against Israel will have it cut off. The Houthis will continue to pay a heavy price for their actions.'
The Houthis then responded with an apparent missile attack on Israel. The Israeli military said it attempted to intercept the missile, but it appeared to make impact, though there were no immediate reports of injuries. Sirens sounded in the West Bank and along the Dead Sea.
Ship attack forces crew to abandon vessel
The attack on the Magic Seas, a bulk carrier heading north to Egypt's Suez Canal, happened some 100 kilometres (60 miles) southwest of Hodeida, Yemen, which is held by the Houthis. The British military's United Kingdom Maritime Trade Operations centre first said that an armed security team on the vessel had returned fire against an initial attack of gunfire and rocket-propelled grenades, though the vessel later was struck by projectiles.
Ambrey, a private maritime security firm, issued an alert saying that a merchant ship had been 'attacked by eight skiffs while transiting northbound in the Red Sea.'
Ambrey later said the ship also had been attacked by bomb-carrying drone boats, which could be a major escalation. It said two drone boats struck the ship, while another two had been destroyed by the armed guards on board.
The United Kingdom Maritime Trade Operations centre said the ship was taking on water and its crew had abandoned the vessel. They were rescued by a passing ship, it added.
The U.S. Navy's Mideast-based 5th Fleet referred questions to the military's Central Command, which said it was aware of the incident without elaborating.
Moammar al-Eryani, the Information Minister for Yemen's exiled government opposing the Houthis, identified the vessel attacked as the Magic Seas and blamed the rebels for the attack. The ship had been broadcasting it had an armed security team on board in the vicinity the attack took place and had been heading north.
'The attack also proves once again that the Houthis are merely a front for an Iranian scheme using Yemen as a platform to undermine regional and global stability, at a time when Tehran continues to arm the militia and provide it with military technology, including missiles, aircraft, drones, and sea mines,' Mr. al-Eryani wrote on the social platform X.
The Magic Seas' owners did not respond to a request for comment.
Houthi attacks came over Israel-Hamas war
The Houthi rebels have been launching missile and drone attacks against commercial and military ships in the region in what the group's leadership has described as an effort to end Israel's offensive against Hamas in the Gaza Strip.
The group's al-Masirah satellite news channel acknowledged the attack occurred, but offered no other comment on it as it aired a speech by its secretive leader, Abdul Malik al-Houthi. However, Ambrey said the Magic Seas met 'the established Houthi target profile,' without elaborating.
Between November 2023 and January 2025, the Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors. Their campaign has greatly reduced the flow of trade through the Red Sea corridor, which typically sees $1 trillion of goods move through it annually. Shipping through the Red Sea, while still lower than normal, has increased in recent weeks.
The Houthis paused attacks until the U.S. launched a broad assault against the rebels in mid-March. That ended weeks later and the Houthis haven't attacked a vessel, though they have continued occasional missile attacks targeting Israel. On Sunday, the group claimed launching an earlier missile at Israel which the Israeli military said it intercepted.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
35 minutes ago
- Mint
Crypto, Startups and Banking Make a Scary Mix
(Bloomberg Opinion) -- The next must-have accessory for crypto and tech bros looks to be far less sexy than a Lamborghini — it's a banking license. Getting approved is typically time-consuming, bureaucratic and dull, but these budding lenders are likely to find themselves pushing on an open door — and that poses dangers. Stablecoin issuer Circle Internet Group Inc. and tech billionaire Peter Thiel are among the names linked with trust bank charter applications in recent days. The backdrop to this is a White House pushing for regulators to help innovation and growth in the economy and finance. Some of that is down to the backing Donald Trump got from Silicon Valley billionaires and crypto moguls in last year's presidential race, plus his personal financial interests in memecoins and digital assets. But it is also down to frustrations with a long drought in new bank formations since the financial crisis of 2008. Before that, many years had seen 100-200 new banks each, according to the Federal Deposit Insurance Corp. Since then, most years have barely seen 10 or 15 lenders open for business. Ultra-low rates have made simple banking less profitable, but campaigners for small banks also blame heavy-handed regulation and tough capital rules. Michelle Bowman, the Trump-appointed chief regulator at the Federal Reserve, has spoken often about this dearth in new banks and promised to bring back more tailoring of supervision and regulation to make life easier for small banks. Stoking the system with banks heavily linked to venture capital and crypto could be a terrible idea, however. These two industries were at the heart of the mini-banking crisis in spring 2023 — and not by coincidence. 'These are the most macroeconomically sensitive parts of the economy,' Steven Kelly, associate director of research at Yale School of Management's Program on Financial Stability, told me. 'When interest rates go up, they are the first sectors to turn down.' Ripple Labs Inc. and BitGo Inc. have recently begun trust bank charter applications, according to Bloomberg News, following the lead of stablecoin issuer Circle, which started its bid to become a bank hot on the heels of its $8 billion initial public offering last month. These national charters don't allow banks to collect deposits or make loans directly, but they can use technology and correspondent banking partners to accomplish the same services. Only one crypto company has gained this kind of national license previously, Anchorage Digital Bank in 2021. But other lenders have become deeply entwined with the industry: The best known, Silvergate Bank and Signature Bank, both failed in March 2023. Another hopeful is Erebor, a digital bank startup backed by an all-star cast of JRR Tolkien fans, including Thiel and Palmer Luckey, according to several reports last week. Their bank, named for a dragon's mountain home in The Lord of the Rings, will focus on the 'innovation economy' including tech businesses and digital currencies. It aims to fill a gap in the market left by the failure of Silicon Valley Bank. The 2023 crisis was concentrated around the West Coast tech scene similar to the way Texas suffered a wave of bank failures in the 1980s, as I wrote at the time. The boom and bust of a dominant local industry (oil in the Texas case) caused irreparable harm to the banks most exposed to it. With Silvergate and Signature (the New York-based exception to the West Coast rule), the problem was that a dominant share of their deposits was there only as a gateway to crypto markets: When prices tumbled and trading dried up, the money left, ruining the banks. At SVB, its funding was mainly cash raised by startup companies. When rising interest rates hit valuations and froze venture capital fundraising, the bank's funds began to shrink too. Startup cash burn became SVB's deposit burn, exposing cracks in its business months before the faster run that killed it off. These banks were focused on economically sensitive industries that are highly correlated to each other, and they lacked diversification of funding. That's a bad business model and it is much more significant in explaining the 2023 failures than depositor fears about unrealized losses on bonds, or the role of social media in transmitting panic, according to Kelly and Jonathan Rose, a senior economist at the Fed Bank of Chicago, in a paper(1) they co-authored on the 2023 blowups. Circle, Erebor and the rest look like they're running straight back toward this bad business model trap. The more successful they are and the bigger they grow, the more dangerous they could be. It's worth remembering that Silvergate and Signature were still small when they created fears of a rolling disaster. As Bowman has discussed in several speeches, the tailoring of bank rules isn't just about size but also complexity and business models. The last of these is what should be ringing alarm bells over these wannabe bankers. The last thing the US needs is a whole new group of banks with a hyper focus on stablecoins, crypto and startups. More From Bloomberg Opinion: (1) Rushing to Judgment and the Banking Crisis of 2023. Steven Kelly and Jonathan Rose. Working paper for the Federal Reserve Bank of Chicago, March 2025 This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times. More stories like this are available on


Time of India
an hour ago
- Time of India
Is American Exceptionalism over? Investors question ‘no alternative' doctrine as US dollar declines, economy slows, global competition rises
The concept of American exceptionalism - the belief that the United States is unique, even superior, in its values, governance, and economic resilience - has long shaped both national identity and global investment strategies. But as the U.S. economy shows signs of strain in 2025, investors and analysts are questioning whether the 'TINA' doctrine ('There Is No Alternative' to U.S. assets) still holds true. The U.S. dollar is experiencing its sharpest decline in over half a century, with the dollar index dropping 10.8% in the first half of 2025 - the worst start to a year since 1973. This rapid fall is driven by a combination of unpredictable economic policies, record-high U.S. deficits, and mounting concerns over the stability of American fiscal management. President Trump's erratic tariff strategies and repeated criticisms of the Federal Reserve have further undermined confidence in the dollar as the world's primary reserve currency. As a result, central banks worldwide are shifting their reserves away from the dollar and increasing their gold holdings. Gold prices have surged to record highs this year, as countries seek to protect their reserves from the risk of further dollar devaluation . Analysts note that the traditional 'safe haven' status of the dollar is being questioned for the first time in decades, prompting a global move to diversify reserves and reduce exposure to U.S. assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This may be of interest to you! Undo This shift is not just a financial technicality - it's already affecting Americans. The weaker dollar makes foreign travel and imported goods more expensive, while also raising the cost of government borrowing as demand for U.S. Treasuries wanes. Meanwhile, the long-term consequences could include diminished U.S. influence in global markets and a fundamental reshaping of the international financial system. What Is American Exceptionalism? American exceptionalism is rooted in the idea that the U.S. was founded on distinct principles: democracy, liberty, and self-governance. The phrase 'city upon a hill,' first used by Puritan leader John Winthrop in 1630, and later observations by Alexis de Tocqueville, helped cement the notion that America is a model for the world. Proponents argue that the U.S. is obligated to play a special role in global affairs, spreading its values and serving as a beacon of freedom and opportunity. Critics, however, warn that this belief can foster a sense of superiority and blind spots to the nation's flaws. The TINA doctrine: Why investors have favored the US For decades, global investors have embraced the 'TINA' doctrine - seeing U.S. assets as the safest and most attractive option. This confidence has been reinforced by: Live Events America's consistent economic outperformance, especially after the 2008 financial crisis and the COVID-19 pandemic. The strength of U.S. institutions, deep capital markets, and the dollar's dominance in global finance. A culture of innovation and entrepreneurship, producing world-leading technology and consumer brands. 2025: Exceptionalism under pressure This year, however, cracks are appearing in the American economic story: Economic Slowdown : The U.S. economy shrank by 0.3% in the first quarter of 2025, raising concerns about the sustainability of recent outperformance. Fiscal Strain: The federal budget deficit remains high, and political battles over spending and debt are intensifying. Policy Shifts: The Trump administration's mix of pro-growth tax cuts and deregulatory moves is offset by new tariffs and tighter immigration rules, creating uncertainty for businesses and investors. Global Competition : Other regions, especially in Asia and Europe, are adapting and investing in technology and infrastructure, making them more competitive alternatives for global capital. Analysts note that while the U.S. still enjoys many structural advantages, the gap is narrowing. 'The idea that there is no alternative to U.S. assets is being tested for the first time in years,' said a senior strategist at a major investment bank. 'Investors are watching not just for growth, but for stability and predictability - qualities that are no longer guaranteed.' American exceptionalism remains a powerful force in politics and culture, but its economic underpinnings are facing new challenges. The U.S. is still a global leader, but the world is changing - and investors are beginning to look more seriously at alternatives.


The Hindu
an hour ago
- The Hindu
BRICS group condemns increase of tariffs, but doesn't name Trump, in summit overshadowed by West Asia tensions
The BRICS bloc of developing nations on Sunday (July 6, 2025) condemned the increase of tariffs and attacks on Iran, but refrained from naming U.S. President Donald Trump. The group's declaration, which also took aim at Israel's military actions in West Asia, also spared its member Russia from criticism and mentioned war-torn Ukraine just once. The two-day summit was marked by the absences of two of its most powerful members. China's President Xi Jinping did not attend a BRICS summit for the first time since he became his country's leader in 2012. Russian President Vladimir Putin, who spoke via video conference, continues to mostly avoid travelling abroad due to an international arrest warrant issued after Russia invaded Ukraine. In an indirect swipe at the U.S., the group's declaration raised 'serious concerns' about the rise of tariffs which it said were 'inconsistent with WTO [World Trade Organisation] rules.' The BRICS added that those restrictions 'threaten to reduce global trade, disrupt global supply chains, and introduce uncertainty.' Mr. Trump, in a post on his social media platform late on Sunday, said any country that aligns itself with what he termed 'the Anti-American policies of BRICS' would be levied an added 10% tariff. Brazil's President Luiz Inacio Lula da Silva, who hosted the summit, criticised NATO's decision to hike military spending by 5% of GDP annually by 2035. That sentiment was later echoed in the group's declaration. 'It is always easier to invest in war than in peace,' Mr. Lula said at the opening of the summit, which is scheduled to continue on Monday. Iran in attendance Iranian President Masoud Pezeshkian, who was expected to attend the summit before the attacks on his country in June, sent his Foreign Minister Abbas Araghchi to the meeting in Rio. The group's declaration criticised the attacks on Iran without mentioning the U.S. or Israel, the two nations that conducted them. In his speech, Mr. Araghchi told leaders he had pushed for every member of the United Nations to condemn Israel strongly. He added Israel and the U.S. should be accountable for rights violations. The Iranian Foreign Minister said the aftermath of the war 'will not be limited' to one country. 'The entire region and beyond will be damaged,' Mr. Araghchi said. BRICS leaders expressed 'grave concern' for the humanitarian situation in Gaza, called for the release of all hostages, a return to the negotiating table and reaffirmed their commitment to the two-state solution. Later, Iran's Mr. Araghchi said in a separate statement on messaging app Telegram that his government had expressed its reservation regarding a two-state solution in a note, saying it will not work 'just as it has not worked in the past.' Also on Telegram, Russia's Foreign Ministry in another statement named the U.S. and Israel, and condemned the 'unprovoked military strikes' against Iran. Russia spared The group's 31-page declaration mentions Ukraine just once, while condemning 'in the strongest terms' recent Ukrainian attacks on Russia. 'We recall our national positions concerning the conflict in Ukraine as expressed in the appropriate fora, including the UN Security Council and the U.N. General Assembly,' the group said. Joao Alfredo Nyegray, an international business and geopolitics professor at the Pontifical Catholic University in Parana, said the summit could have played a role in showing an alternative to an unstable world, but won't do so. 'The withdrawal of Egypt's President Abdel Fattah al-Sisi and the uncertainty about the level of representation for countries like Iran, Saudi Arabia and the UAE are confirming the difficulty for the BRICS to establish themselves as a cohesive pole of global leadership,' Mr. Nyegray said. 'This moment demands high level articulation, but we are actually seeing dispersion.' Avoid Trump's tariffs While Mr. Lula advocated on Sunday for the reform of Western-led global institutions, Brazil aimed to avoid becoming the target of higher tariffs. Mr. Trump has threatened to impose 100% tariffs against the bloc if they take any moves to undermine the dollar. Last year, at the summit hosted by Russia in Kazan, the Kremlin sought to develop alternatives to U.S.-dominated payment systems which would allow it to dodge Western sanctions imposed after Russia's invasion of Ukraine in February 2022. Brazil decided to focus on less controversial issues in the summit, such as promoting trade relations between members and global health, after Mr. Trump returned to the White House, said Ana Garcia, a professor at the Rio de Janeiro Federal Rural University. 'Brazil wants the least amount of damage possible and to avoid drawing the attention of the Trump administration to prevent any type of risk to the Brazilian economy,' Ms. Garcia said. 'Best opportunity for emerging countries' BRICS was founded by Brazil, Russia, India, China and South Africa, but the group last year expanded to include Indonesia, Iran, Egypt, Ethiopia, and the United Arab Emirates. As well as new members, the bloc has 10 strategic partner countries, a category created at last year's summit that includes Belarus, Cuba, and Vietnam. That rapid expansion led Brazil to put housekeeping issues — officially termed institutional development — on the agenda to better integrate new members and boost internal cohesion. Despite notable absences, the summit is important for attendees, especially in the context of instability provoked by Mr. Trump's tariff wars, said Bruce Scheidl, a researcher at the University of Sao Paulo's BRICS study group. 'The summit offers the best opportunity for emerging countries to respond, in the sense of seeking alternatives and diversifying their economic partnerships,' Mr. Scheidl said. Earlier on Sunday, a pro-Israel non-profit placed dozens of rainbow flags on Ipanema beach to protest Iran's policies regarding LGBT+ people. On Saturday, human rights group Amnesty International protested Brazil's plans for offshore oil drilling near the mouth of the Amazon River. For Mr. Lula, the summit is a welcome pause from a difficult domestic scenario, marked by a drop in popularity and conflict with Congress. The meeting was also an opportunity to advance climate negotiations and commitments on protecting the environment before November's COP 30 climate talks in the Amazonian city of Belem.