Bab al-Mandeb is a narrow strait connecting the Red Sea to the Gulf of Aden, through which 10% of global oil flows pass, Platts said.

• In H1 2023, 8.8m b/d of oil flows passed through Bab al-Mandeb, according to EIA data.
• Jet fuel is the most commonly traded commodity through the Suez Canal, around 30% of flows according to Platts citing Kpler.
• The Houthis declared war on Israel and are threatening to Israeli-owned ships or vessels bound for its ports, with ships attacked by drones/UAVs and missiles.
• The attacks by Yemen’s Houthis have left shipping companies shunning the area, according to Platts.
• Currently Maersk and Hapag-Lloyd have suspended operations through the area.
• Freight forwarders are raising rates on shipments, with “a container bound for the Middle East levied a war risk surcharge of $100/teu on dry and reefer cargo”, according to Platts.