Houthis seize Bab al-Mandeb strait, impacting Suez Canal revenues

The Houthi‑aligned forces in Yemen have taken control of the strategic Bab al‑Mandeb strait, the narrow waterway linking the Red Sea to the Gulf of Aden, effectively disrupting the flow of commercial traffic through the adjacent Suez Canal. According to maritime authorities, the seizure has halted a significant portion of the daily vessel transits that generate an estimated $5 billion in annual toll revenues for Egypt, prompting shipping companies to reroute vessels around the Cape of Good Hope at increased cost and delay.

The blockage has also triggered a surge in displacement as residents of Yemen’s southern coastal provinces flee the heightened conflict, joining an already strained refugee population in neighboring Djibouti, Eritrea and Sudan. Regional analysts note that the incident exposes longstanding security gaps in the Red Sea corridor, where limited naval patrols and fragmented coordination among Gulf Cooperation Council states and international forces have hampered rapid response to maritime threats.

International bodies, including the United Nations and the International Maritime Organization, have called for an urgent diplomatic resolution and the restoration of safe passage through Bab al‑Mandeb. Egyptian officials have warned that prolonged disruption could further erode the canal’s revenue base and destabilize the broader regional economy, while coalition partners are reportedly assessing options for a coordinated naval operation to re‑establish control of the strait.