ADEN — Yemen's Iran-aligned Houthis declared on Monday a total ban on Israeli maritime navigation in the Red Sea, adding to the challenges for global shipping through the Middle East during the ongoing Iran war. The group stated that it had launched an attack on Israel and enacted a comprehensive prohibition on Israeli shipping in the region, warning of further escalatory measures.
Impact on Energy Markets
Any Houthi attacks on Red Sea shipping would heighten concerns in energy markets, especially more than three months into Iran's closure of the Strait of Hormuz, with the war reigniting overnight. The Red Sea, which leads to the Suez Canal, is a crucial shipping lane in its own right and has become the primary alternative outlet for millions of barrels per day of Middle East oil transported via pipelines that bypass the Gulf.
Previous Disruptions and Current Stance
The Houthis disrupted shipping between 2023 and 2025, claiming solidarity with the Palestinians, but had largely refrained from involvement in the broader Middle East war that began with U.S.-Israeli attacks on Iran in February this year. A Houthi source told Reuters that preventing Israeli ships from transiting the Red Sea is a first step, and further escalation could lead to stopping the passage of any vessels bound for Israel, among other measures.
Expert Analysis and Warnings
British maritime risk management group Vanguard noted on Monday that the announcement does not amount to a ban on all commercial shipping in the Red Sea but is instead directed at vessels assessed by the Houthis as Israeli-affiliated. They advised, “Given the broad wording used, vessels operating in the region should maintain heightened vigilance and conduct enhanced affiliation screening.” Shipping sources indicated that the action could have wider repercussions, as the Houthis have previously targeted ships with no direct link to Israel. One source commented, “The announcement will cause every ship to think carefully about the wisdom of making a transit. The Houthis don’t have a good record of determining which ships have ‘links’ to Israel, so it’s probably better to go around Africa, pay the fuel bill, and benefit from lower war risk insurance costs.”
Insurance and Shipping Traffic
Red Sea war risk insurance rates remained unchanged on Monday at around 0.3% of a ship's value, with little movement in recent weeks, according to an insurance industry source. The rates are reviewed every 24 hours, so levels could change rapidly. During the two-year Gaza war that began in October 2023, Houthi attacks on Red Sea shipping led major companies like Maersk and Hapag-Lloyd to divert around Africa, a far longer and more expensive route. Those attacks, initially on what the group called Israeli-linked vessels, were later expanded to include any shipping companies that used Israeli ports.
Current Traffic Levels
Shipping traffic through the southern Red Sea and the critical Bab al-Mandab strait has still not returned to pre-October 2023 levels. Average monthly sailings in March 2026 reached 1,034 crossings, compared with over 2,000 in September 2023, according to analysis from Lloyd's List Intelligence.
