The Bab al-Mandab strait, known as the 'Gate of Tears' due to its treacherous sailing conditions, has emerged as a key talking point in the US-Iran war. The strait, which accounts for 12% of global trade, has been threatened by Iran-backed Yemeni fighter group Houthis.
The Houthis, part of the 'Axis of Resistance' that supports Iran, have warned of disrupting shipping through the Bab al-Mandab strait, which connects the Red Sea to the Gulf of Aden. This could have a significant impact on the world economy, with analyst Chris Weston warning that the Houthi's ability to disrupt shipping is the new key risk.
The Bab al-Mandab strait is a crucial waterway, allowing ships to directly transit between the Mediterranean Sea and the Indian Ocean. It accounts for 14% of global maritime trade, with fossil fuels being a major component. The International Energy Agency estimates that in 2025, about 4.2 million barrels of crude oil and petroleum liquids will cross the Bab al-Mandab Strait per day.
While the strait cannot be 'closed' entirely, disruption on one end could still have a significant impact on shipping companies. Insurance costs could also repel shipping companies from choosing the route, with costs rising to 2% of the value of the cargo after the Red Sea crisis.
