image sourced from original article at Yemen's Houthi rebels have entered the conflict on the side of Iran, raising fears of a worsening global oil and trade crisis. The Strait of Hormuz has already been largely closed due to threats from Iranian mines and missiles, delaying oil tankers and driving up global prices. In response, Saudi Arabia has been rerouting millions of barrels of crude oil per day through the Bab el Mandeb Strait to bypass Iran.
However, this alternative route remains vulnerable. The Bab el Mandeb Strait runs close to Yemen, where Houthi forces possess missiles and drones that have previously targeted commercial shipping. Between late 2023 and early 2025, the group attacked more than 100 merchant vessels, sinking two ships and killing four sailors, prompting international naval deployments to protect trade routes.
Fresh disruption in the Bab el Mandeb Strait would compound existing pressures caused by instability in the Strait of Hormuz. Around a quarter of global container trade passes through the Bab el Mandeb route toward the Suez Canal, which itself handles about 12 percent of total global trade. Major shipping companies are already rerouting vessels around southern Africa, increasing fuel costs and imposing additional surcharges, with potential clear and significant economic consequences for the United Kingdom and global markets.
