Houthi advances into strategic areas near Yemen’s southwestern coast have increased the group’s ability to influence maritime traffic through the Bab el-Mandeb Strait, a key gateway linking the Red Sea with the Gulf of Aden, the Indian Ocean and the Suez Canal. Traffic recently fell 88%, from an average of 33 ships to four in 24 hours, according to IMF PortWatch data, while oil and chemical tanker traffic dropped 91% to one vessel. Attacks that began in 2023 prompted major carriers to reroute around the Cape of Good Hope, adding weeks to voyages and lifting freight and insurance costs. Military and strategic expert Samir Ragheb said Houthi attacks on civilian and commercial vessels had driven insurance prices and related costs up threefold. The disruption has also affected Egypt’s Suez Canal revenues, with Foreign Minister Badr Abdelatty estimating losses of about $11 billion. Energy experts warned that simultaneous disruption in Bab el-Mandeb and the Strait of Hormuz could push Brent crude above $108 and potentially to $110 or $120 a barrel, while threatening Saudi Arabia’s East-West pipeline and alternative export routes. Analysts outlined three possible paths: continued escalation, a wider regional conflict or a settlement that restores stability. Italy is also preparing possible naval measures to protect merchant shipping.