Houthi rebels capture strategic Red Sea islands, threatening Saudi shipping routes

Houthi forces have seized the Greater and Lesser Hanish islands in the southern Red Sea, marking a significant escalation of territorial control that puts the group within striking distance of some of the world’s most vital shipping lanes. The islands sit roughly 160 km north of the Bab al-Mandeb Strait, a narrow waterway that funnels an enormous share of global trade between the Red Sea and the Indian Ocean.

The capture, which took place around September 14, follows the Houthis’ recent seizure of the strategic Red Sea port of Mokha and Perim (Mayun) Island. For Saudi Arabia, which has increasingly relied on the Red Sea route for oil exports due to disruptions at the Strait of Hormuz, the timing could hardly be worse.

Why the Hanish Islands matter

The Bab al-Mandeb Strait is one of the planet’s most important maritime chokepoints, connecting the Red Sea to the Gulf of Aden and, ultimately, the Indian Ocean. The Hanish archipelago, at 160 km north of the strait, offers a commanding position over northbound and southbound shipping traffic. Combined with Perim Island, which sits almost directly in the Bab al-Mandeb, the Houthis now hold overlapping zones of influence over the approach to and passage through the strait.

A humanitarian crisis accelerating in parallel

Between 80,000 and 94,000 people have been displaced by fighting since early September alone. The Houthis have also escalated direct attacks on Saudi territory, with the Saudi-led coalition reporting interceptions of drones, including engagements near Mecca. US officials have expressed growing concern about the ramifications for regional stability and global trade.

What this means for energy markets and global trade

Roughly 10% of global seaborne oil trade passes through the Bab al-Mandeb Strait under normal conditions. When ships can’t transit safely, they reroute around the Cape of Good Hope at the southern tip of Africa, adding weeks to delivery times and millions in fuel costs per voyage.

In late 2023 and into 2024, Houthi drone and missile attacks on Red Sea vessels triggered a major rerouting of container traffic, sending freight rates soaring and adding pressure to already stressed global supply chains. The current island seizures give the group a stronger physical foothold from which to project that kind of threat.

Shipping companies operating in the region face elevated operational risk, which translates into higher insurance premiums, increased security costs, and the potential need for naval escorts.

Yemen’s civil conflict has long served as a proxy battleground for Saudi-Iranian competition. Iran’s support for the Houthi movement has been well documented, and gains like the Hanish Island seizure serve Tehran’s strategic interest in keeping Riyadh off-balance without directly engaging Saudi forces.

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