Trade Disruption, Oil Price Hike: What Will Happen If Houthis Lock Up Strait Of Bab El-Mandeb?

Last Updated:March 22, 2026, 10:26 IST

Oil, liquefied natural gas, manufactured goods and food shipments pass through the strait of Bab el Mandeb.

The Bab el-Mandeb Strait has emerged as a new flashpoint in the escalating West Asia crisis, raising fears of major disruption to global trade and energy flows. Roughly 8.8 million barrels of oil per day move through this narrow maritime corridor, along with about 10-12 per cent of worldwide seaborne commerce.

With tensions already high around the Strait of Hormuz, analysts warn that any closure of Bab el-Mandeb could severely strain global supply chains and push oil prices even higher. Prices have already climbed past $110 per barrel, and a simultaneous disruption of both chokepoints could push prices toward $120 or higher, threatening up to 25–30% of global seaborne oil shipments, The Economic Times reported.

Major shipping companies are already adjusting operations. Firms such as Maersk, Hapag-Lloyd, and CMA CGM have curtailed several routes through the Red Sea corridor, instead diverting vessels around Africa. The longer journey significantly increases transit times and freight costs, adding further pressure on global trade networks.

Significance Of Bab el-Mandeb

Geographically, the Bab el-Mandeb Strait lies between Yemen on the Arabian Peninsula and Djibouti in the Horn of Africa. Though only about 30 kilometers wide at its narrowest point, it serves as the gateway linking the Red Sea to the Gulf of Aden and ultimately to the Suez Canal — a critical route connecting Asian, Middle Eastern and European markets. Oil, liquefied natural gas, manufactured goods and food shipments all pass through this passage, meaning any interruption can quickly ripple across global markets.

The latest tensions stem from warnings by Yemen’s Iran-aligned Houthi movement. Group leader Abdul‑Malik al‑Houthi said the group’s forces are prepared for coordinated action amid the broader regional conflict involving the United States and Israel. Houthi officials have indicated that blocking the strait remains a potential option, with possible tactics including naval drones, anti-ship missiles launched from Yemen’s western coast, and attempts to target or intercept commercial vessels — methods the group has used in earlier Red Sea attacks.

News world Trade Disruption, Oil Price Hike: What Will Happen If Houthis Lock Up Strait Of Bab El-Mandeb?

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