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The two routes are essential for global trade and energy transportation, connecting major producers and markets across the Middle East, Asia, Europe and Africa. Recent tensions in the region have led insurers and shipping companies to reassess risks for vessels operating in these areas.

The Strait of Hormuz, located between Iran and Oman, is one of the world's most important oil transit routes. A significant share of global crude oil and energy shipments passes through the narrow waterway, making stability in the area important for international energy markets.

The Bab al-Mandeb Strait, located between Yemen and Djibouti/Eritrea, connects the Red Sea with the Gulf of Aden and the Indian Ocean. It is a key route for vessels travelling between Asia and Europe through the Suez Canal.

Shipping risks in the Red Sea have increased due to attacks and threats from Yemen's Houthi movement against commercial vessels. The group has previously targeted ships in the region, saying the actions were linked to the wider conflict in Gaza and regional tensions.

The latest reports of increased risks around Saudi-linked shipping have added further concerns among shipping operators using the Bab al-Mandeb route. However, the actual level of disruption varies, with many vessels continuing to operate while companies monitor security developments.

In the Strait of Hormuz, tensions involving Iran and the United States have created additional uncertainty for commercial shipping.

Iranian authorities have issued warnings regarding vessel movements, while international naval forces have increased monitoring and security operations in the region.

Insurance providers have responded by increasing war-risk premiums for vessels operating in affected areas. Higher insurance costs can add to shipping expenses, which may eventually affect transport costs for goods, energy supplies and global trade.

For countries that depend heavily on imported goods and fuel, including small island economies such as the Maldives, disruptions to major shipping routes can have wider economic impacts if they continue for an extended period.

International shipping companies, governments and maritime organisations are closely monitoring developments as they assess the security situation and possible impacts on global trade.