US and UK forces repelled the “largest” attack yet by Houthi rebels targeting shipping in the Red Sea in a major naval engagement.

HMS Diamond and US warships downed 21 drones and missiles fired by the Yemeni group, British and American officials said. 

“Overnight, HMS Diamond, along with US warships, successfully repelled the largest attack from the Iranian-backed Houthis in the Red Sea to date,” said Grant Shapps, the Defence Secretary.

Sea Viper missiles and guns were used to destroy a flurry of Iranian-produced drones that were heading for the warship and commercial vessels, he added, and warned of a response if the group continued to strike.

“The UK alongside allies have previously made clear that these illegal attacks are completely unacceptable and if continued the Houthis will bear the consequences,” Mr Shapps said. “We will take the action needed to protect innocent lives and the global economy.”

The US Central Command (CENTCOM) said the Houthis had launched “a complex attack of Iranian designed one-way attack UAVs [unmanned aerial vehicles]“, as well as firing anti-ship cruise missiles and an anti-ship ballistic missile from areas of Yemen it controls.

They were downed by a combination of F/A-18 warplanes, operating from the USS Dwight D. Eisenhower aircraft carrier, three American destroyers and the British naval vessel, CENTCOM said.

No injuries or damage were sustained by either the US or UK forces in the attack, thought to be the 26th of its kind in the region since mid-November.

The incident is the latest since the US set up a multinational naval task force last month to protect Red Sea shipping from Houthi attacks, which are endangering a vital transit route linking Asia, the Middle East and Europe that carries up to 12 per cent of global trade.

Houthi barrages in previous weeks have hit some vessels transiting the region, prompting numerous shipping firms to suspend operations in the area and reroute ships around the south of Africa, a detour that adds at least 10 additional days of travel time.

The group has vowed to continue attacks until Israel halts the conflict in Gaza, and warned that it would attack US warships if its own fighters were targeted.

The Houthis - who control much of Yemen - are part of the so-called “axis of resistance” of regional groups which are supported by Iran and arrayed against Israel.