Houthis Reach Strategic Perim Island: Why the Bab el-Mandeb Shipping Route Matters to the World

Yemen’s Iran-aligned Houthi forces have reached Perim Island in the Bab el-Mandeb Strait, marking a major development in the widening Middle East conflict and raising fresh concerns over one of the world’s most important shipping corridors.

The latest advance comes after Houthi forces captured the Red Sea port city of Mocha and moved into other strategically important areas along Yemen’s western coastline.

According to Reuters, Yemeni government sources said government forces had withdrawn from Perim Island, also known as Mayun, while the Houthis had also taken the coastal town of Dhubab, which sits directly opposite the island.

The development matters far beyond Yemen because Bab el-Mandeb is a critical gateway connecting the Red Sea with the Gulf of Aden and the wider Indian Ocean.

What is Bab el-Mandeb?

Bab el-Mandeb, meaning the “Gate of Tears,” is a narrow maritime passage between Yemen and the African countries of Djibouti and Eritrea.

At its narrowest point, the strait is only around 29 km wide. Perim Island divides the waterway into channels used by ships travelling in opposite directions.

The strait forms the southern entrance to the Red Sea. Ships travelling between Asia and Europe through the Suez Canal generally use this route.

That makes Bab el-Mandeb a major global trade chokepoint.

Why is Perim Island so important?

Perim occupies a highly strategic position inside the Bab el-Mandeb Strait.

Its location gives whoever controls the island an important position overlooking maritime traffic moving through the waterway.

The latest Houthi advance is therefore not simply another territorial gain in Yemen's long-running conflict. It potentially gives the group greater leverage over ships using one of the world's busiest maritime corridors.

The strategic picture becomes even more significant because Houthi forces have also moved along the mainland coastline and captured Mocha and Dhubab, while previously controlling Hodeidah farther north.

Why does the world care about this shipping route?

Bab el-Mandeb is an important route for oil, fuel, containerised goods and other commodities travelling between Asia, the Middle East and Europe.

It is effectively the southern gateway to the Suez Canal.

If vessels cannot safely use the Red Sea, shipping companies may have to travel around the Cape of Good Hope in southern Africa.

That alternative can add thousands of nautical miles, considerably increasing fuel consumption, insurance costs, freight rates and delivery times. The previous Houthi attacks on Red Sea shipping demonstrated how quickly companies can change routes when security risks rise.

The oil-market connection

The latest development comes at an especially sensitive moment for global energy markets.

The Strait of Hormuz, another major energy chokepoint on the opposite side of the Arabian Peninsula, has already been severely disrupted by the wider Iran-U.S. conflict.

That means the Red Sea route has become even more strategically important for Gulf energy exporters.

Reuters reported that petroleum volumes moving through Bab el-Mandeb represented about 7% of global oil output in June, according to Kpler data.

Any additional disruption could therefore create another source of pressure on global oil supplies.

Oil prices were already moving sharply higher this week amid the broader Middle East crisis. Brent crude had approached or moved above the $100-a-barrel level before retreating on Friday, while concerns about shipping disruptions remained a major factor for investors.

What happens if shipping through Bab el-Mandeb is disrupted?

There are several possible consequences.

1. Higher shipping costs

Shipping companies could divert vessels around Africa. Longer voyages mean higher fuel and crew costs.

2. More expensive insurance

A greater military threat around a shipping corridor generally increases the cost of insuring commercial vessels.

3. Higher oil and fuel prices

If oil tankers face difficulties using major routes, markets can add a geopolitical risk premium to crude prices.

4. Longer delivery times

Container ships travelling between Asia and Europe could face significantly longer journeys.

5. Pressure on consumer prices

Higher transport and energy costs can eventually feed into the prices of manufactured goods, food, fuel and other products.

Why Saudi Arabia is particularly exposed

Saudi Arabia is the world's largest oil exporter, and the current crisis has made maritime routes especially important for the kingdom.

Reuters reported that Saudi Arabia has been relying more heavily on Red Sea routes after the conflict disrupted shipping through the Strait of Hormuz.

That creates a difficult strategic situation.

If both Hormuz and Bab el-Mandeb become severely restricted, Gulf energy exporters could face major challenges moving supplies to international customers.

This is one reason the Houthi advance has attracted attention well beyond Yemen.

Could the Houthis actually close the strait?

Capturing or reaching strategic positions around Bab el-Mandeb does not automatically mean that the Houthis control all shipping through the strait.

The waterway is international and commercial traffic can potentially continue even when military forces control territory nearby.

However, the danger is that attacks, threats, missiles, drones or mines could make shipping companies judge the route to be too risky.

The experience since late 2023 showed that ships do not necessarily need to be physically prevented from passing through a waterway for the economic impact to become significant.

Even the threat of attack can cause companies to reroute.

Yemen's government plans a counter-offensive

The internationally recognised Yemeni government has indicated that it intends to fight back.

Government forces have discussed deploying additional weapons and aircraft against Houthi positions and attempting to recover areas captured during the group's rapid advance along the Red Sea coast.

The fighting could therefore develop into another major phase of Yemen's civil war.

The country had experienced a fragile period of reduced fighting following the 2022 U.N.-brokered truce, but the latest escalation threatens to reverse those gains.

Iran's role adds another layer

The Houthi movement is closely aligned with Iran.

Reuters reported that Iranian Revolutionary Guard officials had provided guidance and support to the Houthis as the group expanded its operations during the wider Iran-U.S. conflict. Iran publicly rejects describing the Houthis as a proxy and denies directing their military actions.

The strategic concern for the United States and its regional partners is that the conflict could effectively develop into multiple connected fronts.

Iran faces pressure around the Strait of Hormuz, while the Houthis can create additional pressure around Bab el-Mandeb and the Red Sea.

What it means for India

India could also feel the effects if Red Sea shipping risks increase.

India has major trade links with Europe and the Middle East, and disruptions around the Red Sea can increase voyage times and transportation costs.

Higher crude oil prices could be an even bigger concern.

India imports a substantial portion of its crude oil requirements, so sustained increases in international oil prices can raise the country's import bill and create pressure on inflation.

Indian financial markets have already been reacting to the broader Middle East crisis. Reuters reported that the Nifty 50 and Sensex fell to their lowest levels since June 11 on Friday as Brent crude moved above $108 a barrel amid escalating regional tensions.

A new risk for global trade

The biggest concern is that the world is now dealing with problems around two major maritime chokepoints at the same time.

The Strait of Hormuz is critical for Gulf oil and gas exports.

Bab el-Mandeb is critical for Red Sea and Suez Canal shipping.

If disruptions persist simultaneously, the impact could extend beyond energy markets into global trade, inflation, shipping costs and financial markets.

For now, commercial vessels are still moving through Bab el-Mandeb. Reuters vessel-tracking data showed 26 commodity vessels passed through the strait on Thursday, broadly close to the recent average.

But the strategic situation has changed dramatically.

The bottom line

The Houthi advance toward Perim Island is important because geography has turned a local Yemeni military development into a potential global economic risk.

Control of territory around Bab el-Mandeb could give the Houthis greater leverage over one of the world's key trade routes. If attacks or security concerns force shipping companies to avoid the waterway, the consequences could include longer journeys, higher freight costs and renewed pressure on oil prices.

With the Strait of Hormuz already severely disrupted, the latest developments around Bab el-Mandeb could make the Middle East crisis an even bigger challenge for global energy and trade markets.