Ammon News - The collapse of a ceasefire between Yemen’s Houthi group and the United States has put global shipping routes back in the spotlight.

According to S&P Global Market Intelligence, the Houthi decision “maintains severe risks for all vessels in transit” through the Red Sea, Gulf of Aden, and western Indian Ocean — regardless of flag or ownership.

On September 30, the Houthis announced they were ending a truce agreed in May and would resume targeting U.S.-linked assets. Analysts caution that the vessels cited by the group have already avoided the region for months by sailing around Africa’s Cape of Good Hope, reducing the likelihood of immediate escalation.

Why this matters
The Red Sea and Bab al-Mandab strait form one of the world’s busiest trade arteries. Up to 15% of global trade, including crude oil, LNG, and container cargo, passes through the Suez Canal each year.

Disruption forces shipping companies onto the longer Cape route, adding up to two weeks and sharply higher fuel costs.

Egypt has already felt the impact. President Abdel Fattah el-Sisi said canal revenue losses reached about $7 billion in 2024, or nearly $800 million each month.