Qatar Warns Of 'Catastrophic' Bab Al-Mandeb Closure: What It Means For Oil, Shipping And Global Trade

(MENAFN- Live Mint) Qatar has warned that closing the Bab al-Mandeb Strait could have“catastrophic” consequences for global trade and energy markets, as Iran-backed Houthi forces expand their presence along Yemen's Red Sea coast. The warning comes as tensions in the region intensify, with shipping through the Strait of Hormuz already severely disrupted.

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“The world is suffering enough with the closure of the Strait of Hormuz, so we cannot also afford to add the Bab al-Mandeb into that equation,” Qatar foreign ministry official Ibrahim Al Hashmi told reporters.

The warning has renewed attention on Bab al-Mandeb, a narrow maritime passage that connects the Red Sea with the Gulf of Aden and serves as a crucial gateway for ships travelling between Asia and Europe.

Where is Bab al-Mandeb Strait?

Bab al-Mandeb, which means“Gate of Tears”, lies between Yemen on the Arabian Peninsula and Djibouti and Eritrea on the African coast. It forms the southern entrance to the Red Sea and is the main maritime gateway towards the Suez Canal for vessels approaching from the Indian Ocean.

The strait is about 29 km wide at its narrowest point. Yemen's Perim island, also known as Mayyun, divides the waterway into two shipping channels.

Further north are the Hanish Islands, located between the Yemeni ports of Hodeidah and Mocha. Dhubab is a coastal town close to the strait, making it an important point for anyone seeking to control or disrupt ships passing through the area.

The Houthis already control Hodeidah, which they have used as a base for attacks on ships in the Red Sea. Their reported push towards Mocha, Dhubab, Perim and the Hanish Islands could bring them closer to one of the world's busiest shipping routes.

Why is Bab al-Mandeb important for oil and global trade?

Bab al-Mandeb is one of the world's key maritime chokepoints because it links the Red Sea and Suez Canal with the Indian Ocean. Ships using the route can travel between Asia and Europe without making the much longer journey around southern Africa.

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The waterway is particularly important for energy shipments. Petroleum volumes passing through Bab al-Mandeb amounted to about 7% of global oil output in June, according to Kpler data cited in the supplied report.

The strait is also significant for Saudi Arabia, the world's largest oil exporter. The Houthis have declared a maritime blockade against Saudi Arabia, adding to concerns over the security of shipping in and around the Red Sea.

Any prolonged disruption could therefore affect the movement of crude oil, petroleum products and other commodities between the Gulf, Asia and Europe.

What would a Bab al-Mandeb closure mean?

A complete or sustained closure would force many vessels to avoid the Red Sea and Suez Canal, with ships instead taking the longer route around the Cape of Good Hope in southern Africa.

That diversion can add weeks to journeys and increase fuel, insurance and freight costs. It could also place additional pressure on global supply chains by delaying deliveries.

Also Read | 'Oil could hit $200': Amid US-Iran tensions, Yemen threatens Bab al-Mandeb

The consequences of disruption have already been seen. Since late 2023, Houthi attacks on commercial vessels in the Red Sea have prompted major shipping companies and oil firms, including Maersk, MSC, Hapag-Lloyd and BP, to reroute vessels around Africa.

A new escalation around Bab al-Mande could revive those disruptions on a larger scale.

A closure of Bab al-Mandeb would have consequences far beyond Yemen. Ships carrying oil and other goods could face longer, more expensive journeys, potentially pushing up costs for businesses and consumers. That is why Qatar has warned that shutting the waterway could have“catastrophic” consequences.

(With agency inputs)

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