(Bloomberg) -- The European Union is mulling whether to establish a new naval operation in the Red Sea with the aim of re-establishing security and freedom of navigation, as Yemen’s Houthis continue to attack ships in the critical waterway despite warnings from the US and allies.

The bloc’s member states are discussing the plans this week to determine whether there is willingness by nations to cover the costs and provide vessels for the new operation. The EU could finalize the plans as soon as a Jan. 22 meeting of foreign ministers in Brussels, according to people familiar with the discussions.  

It’s still unclear how the EU operation would complement an existing US-led mission, Operation Prosperity Guardian, which is joined by several EU countries, including France, Italy, the Netherlands and Spain. Germany is among the member states willing to participate in the new EU mission, said the people, who spoke on the condition of anonymity.  

The US and its allies are weighing options for retaliation against escalating attacks at sea by Houthi militants as they struggle to balance their determination to deter further aggression against the risk of sparking a wider Mideast war, Bloomberg reported Wednesday. 

The Houthis, based in Yemen, launched their largest missile and drone attack to date on ships in the Red Sea on Tuesday, challenging US and UK forces patrolling the critical waterway. The Iran-backed militant group has said it won’t back down until Israel stops fighting Hamas, which is also funded and trained by Tehran.

Meanwhile, EU member states would still have to define the exact mandate and geography of any new operation. It has struggled to come up with a determined response to the conflict in the Middle East since Hamas attacked Israel on Oct. 7, given differing views among member states. 

The EU has looked into expanding the scope of an existing mission, Operation Atalanta, aimed at preventing attacks by Somali pirates and patrolled by one Spanish warship. But Spain blocked the move because that mission’s mandate is unrelated to the conflict in the Red Sea.  

The bloc has also been considering punitive measures on Hamas leaders and Israeli settlers in response to violence stemming from the Israel-Hamas war — moves that would align the EU with steps already taken by the US. But the bloc has yet to finalize the plans. 

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