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Why the Bab el-Mandeb Strait matters to global trade

Bab əl-Məndəb boğazı niyə qlobal ticarət üçün bu qədər vacibdir?
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Located between Yemen, Djibouti and Eritrea, the Bab el-Mandeb Strait is a key maritime route linking Asian, Gulf and European markets. Its strategic importance has grown further following the de facto closure of the Strait of Hormuz.

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The Bab el-Mandeb Strait, located in the southern Red Sea between Yemen, Djibouti and Eritrea, is considered one of the world’s most important waterways. The strait is about 30 kilometers wide at its narrowest point. Its Arabic name means “Gate of Tears,” a reference associated with its complex currents.

Following Iran’s de facto closure of the Strait of Hormuz, Bab el-Mandeb has become the Middle East’s most critical maritime passage. According to the International Crisis Group, about 7 percent of global maritime trade normally passes through the strait. This amounts to more than 25,000 vessels and cargo worth approximately $700 billion a year.

A separate analysis published by The Conversation, citing data from the Suez Canal Authority, said the strait’s share of global maritime trade could reach 14 percent under normal conditions. The route links Asian manufacturers and energy exporters in the Gulf with consumers in Europe and the United States.

In the final quarter of 2025, about 40 percent of vessels passing through the Suez Canal carried fuel, while another 40 percent transported bulk and general cargo, including grain. Most of the remaining vessels were container ships.

Bab el-Mandeb is also vital for energy supplies. According to the Center for Strategic and International Studies (CSIS), before Houthi attacks on vessels began in late 2023, about 9 million barrels of oil passed through the strait each day. Subsequent violence reduced that volume by more than half.

According to International Energy Agency estimates cited by The Conversation, approximately 4.2 million barrels of crude oil and petroleum products passed through the strait each day in 2025. This represented about 5 percent of global oil production.

Perim Island divides Bab el-Mandeb into two channels. The larger and deeper channel is used by large vessels. According to US Energy Information Administration data published by CSIS, the strait is approximately 18 miles, or 30 kilometers, wide at its narrowest point.

The economic cost of bypassing the strait is substantial. An analysis by Bloomberg, published by gCaptain, said a voyage from Saudi Arabia to the port of Rotterdam via Bab el-Mandeb and the Suez Canal takes about 22 days. The alternative route around the Cape of Good Hope takes 39 days.

During Houthi attacks in 2023-2024, many shipowners chose the longer route. This increased shipping and insurance costs worldwide.

Against the backdrop of the de facto closure of the Strait of Hormuz, Bab el-Mandeb has acquired added importance for Saudi Arabia. To bypass Hormuz, the country relies extensively on the East-West oil pipeline, which transports crude oil overland to the Red Sea port of Yanbu. However, the pipeline, with a capacity of about 7 million barrels per day, is already operating close to its maximum capability.

Oil exported from Yanbu must pass through the strait by sea. Since three-quarters of Saudi Arabia’s oil exports are destined for Asia, any disruption in Bab el-Mandeb could also weaken this alternative route.

Tensions in the strait increased in October 2023, when the Houthis in Yemen began targeting commercial vessels in solidarity with Palestinians in the Gaza Strip. Several ships, including the Eternity C, came under attack. According to the International Crisis Group, at least four crew members were killed in an attack in July 2025.

The attacks continued intermittently thereafter and became linked to the broader confrontation involving the United States, Israel and Iran. A prolonged crisis could affect fuel prices, shipping schedules and the revenues of countries such as Egypt beyond the Red Sea.

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