The Trump administration launched airstrikes in Yemen, aiming to restore freedom of navigation. Defense Secretary Pete Hegseth defended the action as a critical move to secure a “core national interest.” President Trump, according to officials, was determined to reopen the shipping lanes.
However, internal disagreements surfaced. Vice President JD Vance questioned the necessity of military intervention, pointing out that only 3% of U.S. trade passes through the Suez Canal, while 40% of European trade relies on it. His frustration was evident: “I just hate bailing Europe out again.” Hegseth agreed, calling European reliance on American security “pathetic.”
Trump’s plan to bill Europe for U.S. military action
Beyond military objectives, the administration saw an opportunity for financial leverage. National Security Advisor Michael Waltz confirmed that the U.S. was working to calculate the cost of its Red Sea operation and determine how to impose those expenses on European nations. An official, likely White House Chief of Staff Stephen Miller, insisted that America should extract economic benefits in return for securing the trade routes.
Whether Europe will accept this demand remains uncertain. What is certain, however, is that the power to reopen the Red Sea does not rest with governments.
Shipowners hold the real leverage
Despite military action, global shipping firms dictate when the Red Sea becomes viable again. Their decisions rely on operational risk assessments, not political statements. The U.S. may claim to have restored freedom of navigation, but shipowners will not send vessels back into a conflict zone.
Shipping markets have already adapted. Global trade flows rerouted via the Cape of Good Hope, with freight rates stabilizing accordingly. What was initially seen as a crisis has become a logistical adjustment. Major carriers no longer view the Houthi threat as an active disruption. They operate under a simple principle: no cargo is worth an avoidable risk.
The Red Sea crisis that isn’t
While headlines still frame the situation as a Red Sea crisis, the reality in global shipping tells a different story. There is no longer a crisis in freight markets due to the Houthis. The industry’s flexibility neutralized the impact long before governments acted.
Trump’s attempt to frame the situation as a U.S.-led resolution with an attached invoice faces a fundamental flaw—shipowners have already moved on.