Indonesian Political, Business & Finance News

Houthis Control Bab al-Mandeb, Israel at Risk

| | Source: REPUBLIKA Translated from Indonesian | Trade
Houthis Control Bab al-Mandeb, Israel at Risk
Image: REPUBLIKA

The Yemeni Armed Forces, affiliated with the Houthi Ansarallah movement, have successfully gained control over the strategically significant Bab al-Mandeb Strait. This move has triggered profound concern within Israeli security and economic circles.

Israeli media outlet i24 has described this development as a “shocking event that has shaken the security and economic order of the entire world,” as reported by the Quds News Network.

The Bab al-Mandeb Strait, which is approximately 30 kilometres wide, connects the Red Sea with the Gulf of Aden and the Indian Ocean. Approximately 12 per cent of global maritime trade and 10 per cent of sea-based oil and gas supplies are reported to pass through this strategic waterway.

The Houthis’ ability to close or restrict traffic in this route has forced international shipping companies to reconsider voyages connecting the Indian Ocean, the Red Sea, and the Suez Canal. Companies avoiding the strait have been forced to reroute their vessels around the African continent via the Cape of Good Hope.

Longer Shipping Routes

This alternative route adds between 6,500 to 7,000 kilometres to voyages connecting Asia and Europe. Consequently, travel time increases by between 10 to 14 days, significantly raising fuel consumption, crew costs, and insurance premiums.

Vessels that continue to operate in or near the Red Sea also face a surge in insurance premiums due to the potential for attacks or military escalation. This increase in transport costs has the potential to disrupt global supply chains by triggering price hikes for consumer goods, energy, and raw materials, which in turn exacerbating international inflationary pressures.

The Bab al-Mandeb route plays a crucial role because ships passing through it can continue their voyage north towards the Suez Canal, which serves as the shortest maritime route connecting Asia and Europe.

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