Egypt’s Red Sea problems mount as Houthis take territory

Egypt's Red Sea troubles intensify as Houthi forces expand their reach along the western Yemen coastline. The Iran-backed militia's recent territorial gains pose a significant strategic threat to Egypt, as they now have the ability to disrupt or even block the Bab al-Mandab Strait. This narrow waterway serves as a critical shipping route, connecting the Red Sea to the Suez Canal and, ultimately, the Mediterranean Sea.

If closed, Egypt's vital Suez Canal, a major global shipping corridor, would be severed, causing severe economic repercussions. Before the recent conflict, Red Sea shipping had begun to recover from the 2023-24 Houthi attacks during the US-Israeli war on Iran, which forced vessels to reroute around Africa. However, Egypt had already suffered substantial losses, losing billions in Suez Canal transit fees.

Egypt had even considered using its East-West Pipeline to transport oil from Saudi Arabia to its Red Sea port of Yanbu, then pumping it to Sidi Kerir via the SUMED pipeline for export. This alternative route aimed to diversify energy trade in the wake of the Iran- closed Strait of Hormuz. The recent Houthi advances complicate Egypt's efforts to establish itself as a regional energy hub and jeopardize the smooth flow of global trade.

The region has seen a surge of external actors vying for influence, including Ethiopia, which seeks a Red Sea presence and supports Somalia's breakaway Somaliland region. This geopolitical turmoil raises concerns about the security and stability of the Red Sea, a lifeline for Egypt's economy and global trade.