Yemen's Houthi rebels are unlikely to be responsible for damage to underwater telecommunications cables in the Red Sea, where the Iran-backed group have been carrying out attacks on commercial ships.
Three fibre-optic cables carrying data data between Asia and Europe were cut in the Red Sea, Hong Kong telecoms company HGC Global Communications reported on Monday.
The cables affected were Asia-Africa-Europe 1, the Europe India Gateway, and Seacom and TGN-Gulf line, affecting 25 per cent of the data flow through the Red Sea, the company said. It did not specify where or how the cables were severed.
Seacom told AP that “initial testing indicates the affected segment lies within Yemeni maritime jurisdictions in the southern Red Sea”.
Indian company Tata Communications, which has ties with Seacom, said there was a “snag” with the undersea cables, but that communications were “automatically rerouted to other services”.
There were initial fears the Houthis were behind the severing of Red Sea lines. The group has attacked commercial vessels in the region over Israel's war in Gaza.
A social media account linked to the Houthis posted maps in December showing international cables passing through the Red Sea, prompting fears the group was planning to attack them.
The depth of the cables made sabotage unlikely, said Pooja Bhatt, a Delhi-based maritime security analyst, and author of Nine Dash Line: Deciphering the South China Sea Conundrums.
The cables "are not very thick but encapsulated in watertight sheets. They lie in the deep ocean and are not easy to cut," Ms Bhatt told The National.
“We can very well understand Yemenis should not have the capability to dive down that deep to physically damage cables."
While the undersea cable communication infrastructure is commercial, attacks or sabotage would prompt countries to send their militaries to protect them, Ms Bhatt said.
“Such activities will bring a lot of geopolitical focus on these issues. Until now, submarine cables that have been around for several decades were seen commercially where countries per se were not involved, but now with a focus on attacks on those activities, countries will bring their militaries into action for protection,” she said.
There are reportedly 16 fibre-optic cables in the Red Sea that carry an estimated 17 per cent of all international data traffic from East Asia to Europe.
Damage to telecommunications cables has caused major disruptions, including in 2008 and 2011, when cables were damaged in the Mediterranean, Arabian Gulf and the Indian Ocean.
UAE currency: the story behind the money in your pockets
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Price: From Dh149,900
The biog
Name: Abeer Al Shahi
Emirate: Sharjah – Khor Fakkan
Education: Master’s degree in special education, preparing for a PhD in philosophy.
Favourite activities: Bungee jumping
Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.
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Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
The specs: 2019 BMW X4
Price, base / as tested: Dh276,675 / Dh346,800
Engine: 3.0-litre turbocharged in-line six-cylinder
Transmission: Eight-speed automatic
Power: 354hp @ 5,500rpm
Torque: 500Nm @ 1,550rpm
Fuel economy, combined: 9.0L / 100km
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Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
Ultra processed foods
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The specs
Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 849Nm
Range: 456km
Price: from Dh437,900
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SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now