NewsMacroCargo Ship Struck in Bab al-Mandab Strait, Three Reported Killed Amid Ongoing Houthi Threats

Cargo Ship Struck in Bab al-Mandab Strait, Three Reported Killed Amid Ongoing Houthi Threats

Author: ForexLive·

Key Takeaways

  • Three crew members were killed when a cargo ship's deck was struck in an attack in the Bab al-Mandab strait, as reported by maritime security sources.
  • Daily vessel transits through the Bab al-Mandab strait have fallen from a pre-conflict average of 120–140 ships to approximately 25–40 vessels per day.
  • Many of the world's largest shipping companies have rerouted vessels around Africa's Cape of Good Hope, adding 10–14 days to typical Asia–Europe journeys and increasing freight costs.
  • A multinational naval coalition including the U.S.-led Operation Prosperity Guardian and the EU's Aspides mission has been deployed, yet attacks on commercial shipping have continued.
  • WTI crude oil traded up 2.5% on the day at $84.22 as threats to vessels in both the Bab al-Mandab strait and the Strait of Hormuz continued to affect oil supply routes.
Cargo Ship Struck in Bab al-Mandab Strait, Three Reported Killed Amid Ongoing Houthi Threats

Maritime security sources and regional coast guards are reporting that a cargo ship was targeted in the Red Sea's Bab al-Mandab strait. According to the sources, the vessel's deck was struck and three people were killed in the attack.

The incident underscores the persistent threat to commercial shipping in the Red Sea corridor, where Houthi forces have carried out repeated strikes on vessels transiting the strategically vital waterway since late 2023. The Bab al-Mandab strait, situated between the Horn of Africa and the Arabian Peninsula, connects the Red Sea to the Gulf of Aden and serves as a critical chokepoint for global maritime trade — handling roughly 10–12% of seaborne trade under normal conditions — including a significant share of seaborne oil shipments. The attacks have prompted many of the world's largest shipping companies to reroute vessels around Africa's Cape of Good Hope, adding approximately 10–14 days to typical Asia–Europe journeys and increasing freight costs.

Tensions in the region remain elevated, with the Strait of Hormuz in the Persian Gulf also experiencing disruptions from attacks. The combination of threats across both strategic waterways is affecting oil supply routes, with Saudi Arabia among the countries caught in the crosshairs. A multinational naval coalition, including the U.S.-led Operation Prosperity Guardian and the EU's Aspides mission, has been deployed to safeguard commercial traffic, though attacks have continued despite these escort efforts.

Before the conflict, the average number of daily vessel transits through the Bab al-Mandab strait ranged between 120 and 140 ships. That figure has since dropped to approximately 25 to 40 vessels per day. While this represents an improvement from July lows — which coincided with the peak of Houthi threats last month — attacks such as the latest reported strike continue to serve as a warning to shipping companies operating in the region.

The situation in the Strait of Hormuz is similarly strained, where daily ship transits have reportedly fallen to single digits.

Oil prices have remained underpinned through the week, with WTI crude trading up 2.5% on the day at $84.22.