11 Sep 2026: Houthi Red Sea seizures sustain Cape diversions, raise freight and insurance costs

On 11 September 2026 Houthi forces seized Mokha and much of Yemen’s Red Sea coast, sustaining attacks that have kept traffic through Bab el-Mandeb well below normal and forced many shippers to reroute via the Cape of Good Hope, raising freight and war-risk insurance and reducing Suez-linked revenues for Egypt.

Houthi control of Yemen’s Red Sea shore and attacks near Bab el-Mandeb reduce Suez transits and force costly Cape-of-Good-Hope diversions. Longer voyages and higher war-risk insurance increase import bills (notably fuel and food), pressuring FX and short-term local rates in import-dependent African economies (Egypt particularly). Effects depend on duration of disruptions and whether major carriers resume Suez routing.

Any UKMTO/IMO notice of closure, a major merchant sinking/attack, or a large carrier’s return to Suez transits.