After the Strait of Hormuz, the world could be in for another financial shock after the Houthi regime of Yemen announced a maritime blockade targeting Saudi shipping, according to Reuters. The Houthis have also warned shipping companies to not load or unload at Saudi ports.
The Strait of Bab el-Mandeb is a narrow waterway that connects the Red Sea with the Gulf of Aden. The route connects to the Suez Canal and the Mediterranean Sea in the north and the Arabian Sea and the Indian Ocean to the east.
Any vessel travelling between Asia and Europe thus has to pass through this strait. If the strait is closed vessels must sail around Africa’s Cape of Good Hope, which can add between 4,000 and 6,000 nautical miles and extend transit times by 10 to 20 days.
The Economic Times mentioned data cited by the International Monetary Fund to note that the Suez-Red Sea corridor carries roughly 12 to 15 per cent of global maritime trade.
The route is one of the most heavily used commercial arteries on the planet with consumer goods, electronics, machinery, industrial inputs, chemicals, agricultural products and energy supplies moving through it.
According to the newspaper, a substantial portion of Europe’s trade with Asia depends on the Suez route. Electronics from East Asia, industrial equipment from China, consumer goods from South and Southeast Asia and components for European manufacturers all move through the Red Sea corridor.
On July 13, 2026, The Council of the International Maritime Organization concluded its 137th session by reaffirming the importance of preserving navigational rights and freedoms in accordance with international law.
In a resolution adopted during the session, the Council stressed that the right of transit passage through straits used for international navigation should not be threatened, impeded, denied, hampered, impaired or suspended.
In addition, the Council reiterated that any measures taken by coastal States to regulate traffic in vital shipping lanes should be done with accordance with IMO regulations under the International Convention on the Safety of Life at Sea (SOLAS).
For the moment though, the world seems to be in for another shock with another key shipping land closed off.