Houthi advance raises risks for Red Sea trade and nearby African countries

The Houthis captured Perim Island, which sits beside a narrow passage linking the Red Sea and the Gulf of Aden.

Fighting could disrupt ships and make goods more expensive if companies avoid the route.

At least 3,700 people have fled Yemen to Djibouti since September, and aid workers are preparing for more arrivals.

Ethiopia also depends heavily on Djibouti’s ports for its imports and exports, so higher shipping costs could affect it too.