The Houthis have hit back and vowed to keep targeting shipping vessels in the Red Sea after Western allies warned the Yemeni rebels they will face consequences.
Vessels liked with Israel have been targeted by the Houthis in the Middle East as the situation sparks a stand-off.
The US, UK and 10 other nations issued a joint statement calling for an immediate end to the attacks.
Instability in the region could prompt significant issues, with almost 15 per cent of global trade passing through the Bab al-Mandab Strait.
The Houthis have vowed to fight back
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Fuel prices could soar and supply chains will likely be damaged.
Houthi rebels, who are backed by Iran, declared support for Hamas in the terrorist organisation’s ongoing war against Israel.
More than 20 attacks have taken place since November, with the Houthis using missiles, drones, fast boats and helicopters.
US and British warships have intercepted some missiles but have so far resisted attacking targets in Yemen.
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Houthi fighters are targeting ships in the Red Sea
REUTERSThe joint statement, which included Australia, Canada and New Zealand, called the attacks on shipping "illegal, unacceptable, and profoundly destabilising" and said there was "no lawful justification for intentionally targeting civilian shipping and naval vessels".
The UK Government has been clear it was considering “direct action” to prevent further attacks on shipping.
Writing in The Daily Telegraph, Defence Secretary Grant Shapps said the UK is "willing to take direct action" and "won't hesitate to take further action to deter threats to freedom of navigation in the Red Sea".
Shapps added: "The Houthis should be under no misunderstanding: We are committed to holding malign actors accountable for unlawful seizures and attacks."
Houthi rebels declared support for Hamas in the terrorist organisation’s ongoing war against Israel
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Foreign Secretary Lord David Cameron also spoke with his Iranian counterpart about the situation.
He said: "I spoke to Hossein Amir-Abdollahian today (December 31) about Houthi attacks in the Red Sea, which threaten innocent lives and the global economy.
"I made clear that Iran shares responsibility for preventing these attacks given their long-standing support to the Houthis."
Tehran has rejected the suggestion that it supports attacks by Houthi rebels in the Red Sea.
Iran's Supreme Leader Ayatollah Seyyed Ali Khamenei
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The Iranian foreign ministry spokesperson, Nasser Kanaani, said there was no reason to accuse Tehran but added that the Middle Eastern nation stood squarely behind “Palestinian resistance movements”.
“Iran proudly announces that it supports Palestinian resistance movements for the liberation of their land,” he said.
However, Tehran vowed a “harsh response” to a bomb attack on crowds marking the anniversary of spymaster Qasem Soleimani's assassination by the US.
Responding to the attack which killed 84 people, Iran's Supreme Leader Ayatollah Ali Khamenei said: “Cruel criminals must know that they will be strongly dealt with from now on and undoubtedly there will be a harsh response.”