Houthi Rebels Capture Hanish Islands, Escalating Threat to Saudi Shipping Routes

Houthi forces have seized the Greater and Lesser Hanish islands in the southern Red Sea, marking a significant escalation of territorial control that puts the group within striking distance of some of the world’s most vital shipping lanes. The islands are located approximately 160 km north of the Bab al-Mandeb Strait, a critical waterway for global trade between the Red Sea and the Indian Ocean.

This capture, which occurred around September 14, follows the Houthis’ recent takeover of the strategic Red Sea port of Mokha and Perim (Mayun) Island. For Saudi Arabia, which has increasingly relied on the Red Sea route for oil exports due to disruptions at the Strait of Hormuz, the timing is particularly concerning.

Importance of the Hanish Islands

The Bab al-Mandeb Strait is one of the planet’s most important maritime chokepoints, connecting the Red Sea to the Gulf of Aden and, ultimately, the Indian Ocean. The Hanish archipelago, positioned 160 km north of the strait, offers a commanding position over northbound and southbound shipping traffic. Combined with Perim Island, which is almost directly in the Bab al-Mandeb, the Houthis now hold overlapping zones of influence over the approach to and passage through the strait.

Humanitarian Crisis and Regional Stability

Since early September, between 80,000 and 94,000 people have been displaced due to ongoing fighting. The Houthis have also escalated direct attacks on Saudi territory, with the Saudi-led coalition reporting interceptions of drones, including engagements near Mecca. US officials have expressed growing concern about the implications for regional stability and global trade.

Impact on Global Trade and Energy Markets

Under normal conditions, approximately 10% of global seaborne oil trade passes through the Bab al-Mandeb Strait. When ships cannot transit safely, they are forced to reroute around the Cape of Good Hope, significantly increasing delivery times and costs. In late 2023 and into 2024, Houthi drone and missile attacks on Red Sea vessels have already triggered major rerouting of container traffic, leading to soaring freight rates and added pressure on global supply chains.

The recent island seizures provide the Houthis with a stronger physical foothold to project threats against shipping in the region. Shipping companies now face elevated operational risks, resulting in higher insurance premiums, increased security costs, and potential needs for naval escorts. Yemen’s civil conflict continues to serve as a proxy battleground for Saudi-Iranian competition, with Iran’s support for the Houthis further complicating the situation.

New Developments in Houthi Talks

• US officials met with Houthi representatives in Muscat, Oman, on September 13-14, 2025, marking a significant diplomatic engagement.
• The Houthi delegation included sanctioned officials Mohammad Abdulsalam and Abdelmalik al-Ajiri.
• The Houthis pledged not to target American or Israeli shipping in the Red Sea, focusing their hostilities on Saudi-linked vessels.
• Discussions aimed to reinforce a ceasefire initially established in 2025, which halted Houthi strikes on US interests.
• The Red Sea is crucial for global trade, with 12% of it passing through, highlighting the urgency of these talks.
• The Trump administration designated the Houthis as a foreign terrorist organization in March 2025, complicating humanitarian efforts.
• Saudi Arabia's response to the negotiations will be critical, as the Houthis continue to target Saudi-linked shipping.