Recent Houthi territorial gains around Yemen’s Red Sea coast and Bab el-Mandeb Strait, including the September capture of Mokha port and Perim Island, have heightened the risk of successful strikes on commercial vessels. Ongoing attacks, such as the early October incident involving a Chinese-flagged container ship and August strikes on Saudi tankers, have driven sharp increases in war-risk insurance premiums, with some underwriters withdrawing coverage entirely. These developments have prompted sustained rerouting of east-west traffic around the Cape of Good Hope, elevating freight costs and reducing Suez Canal volumes. Elevated oil-price volatility and disrupted energy flows through the strait reflect trader concerns over supply-chain reliability amid the broader Iran-related conflict. Key near-term catalysts include Saudi-led coalition operations and any further Houthi missile or drone activity targeting shipping lanes.