Economic Events and ForexMar 30, 20262 Min

Bab El-Mandeb: The Red Sea’s ‘Gate Of Tears’ Threatening Global Trade After Strait Of Hormuz

After over a month of global focus on the Strait of Hormuz, a second maritime chokepoint is now drawing attention. The Bab el-Mandeb Strait in the Red Sea, a crucial passage for oil and trade, faces potential disruption as Yemen’s Iran-aligned Houthis enter the war in the Gulf.

This narrow waterway connects the Red Sea to the Gulf of Aden and the Indian Ocean. Ships heading between Europe and Asia pass through it to reach the Suez Canal, one of the most important shipping routes in the world.

What Is the Bab el‑Mandeb Strait?

The Bab el‑Mandeb Strait (Arabic for ‘Gate of Tears’) is a small but critical sea passage. It lies between Yemen on the Arabian Peninsula and Djibouti and Eritrea in the Horn of Africa. Because of its location, it serves as a gateway between the Indian Ocean and the Suez Canal.

Around 10–12% of global oil shipments pass through the strait. Millions of tons of goods, fuel, food, and manufactured products transit here each year.

Strategic Importance

The Bab el‑Mandeb Strait is a second major chokepoint after the Strait of Hormuz.

Together, these passages carry a large share of the world’s energy supplies.

With the Strait of Hormuz effectively closed by ongoing tensions, the Bab el‑Mandeb now carries even greater weight as an alternative route for oil and gas shipments that would normally transit from the Gulf.

The Houthis Enter The War

In the ongoing US-Israeli war on Iran, Yemen’s Iran‑aligned Houthi militants have begun to play a larger role. Over the weekend, they launched missiles at Israel and warned they could target shipping if the US escalates military operations in the region, as per PBS News.

The Houthis control much of Yemen’s Red Sea coastline, giving them a direct position over the Bab el‑Mandeb approach. This increases the risk that they could interfere with commercial and oil shipping traffic.

What If The ‘Gate Of Tears’ Closes?

If the Bab el‑Mandeb were to be disrupted:

• Ships might have to detour around Africa’s Cape of Good Hope, adding weeks to voyages.
• Shipping costs would rise, pushing up prices for many goods.
• Oil markets could tighten, potentially triggering price spikes.

Economic Consequences

Daniel Yergin, a leading energy analyst, said that if the conflict continues and Bab el‑Mandeb is affected, the world could see the “most severe oil disruption in history,” as per Barrons.

“Hormuz is the bigger oil shock point, but Bab el-Mandeb is the broader trade shock point. As the southern gateway to the Red Sea and Suez corridor, any serious threat there affects not only tankers but also container services, breakbulk, dry cargo movements, vessel availability, insurance, war risk premiums, and overall voyage economics on the Asia-Europe route," said Nayeem Noor, Vice President for Business Development at GMS, the world's largest cash buyer of ships, as per NDTV.