# Djibouti's refugee crisis deepens as Houthis advance > Iranian-backed rebels are destabilizing the Horn of Africa, forcing thousands of Yemenis to flee across the Red Sea to a country already overwhelmed by displacement. - Title: Djibouti's refugee crisis deepens as Houthis advance - Summary: Iranian-backed rebels are destabilizing the Horn of Africa, forcing thousands of Yemenis to flee across the Red Sea to a country already overwhelmed by… - Keywords: djibouti, yemen, houthis, red sea, refugees, horn of africa, iran, al-shabab, maritime trade, humanitarian crisis, bab el-mandeb strait, somaliland - Source: Foreign Policy — https://foreignpolicy.com/2026/09/23/what-to-know-about-djiboutis-refugee-crisis - Author: Nosmot Gbadamosi - Read time: 3 min - Topics: djibouti, yemen, houthis, red sea, refugees, horn of africa, iran, al-shabab, maritime trade, humanitarian crisis, bab el-mandeb strait, somaliland ## Thousands flee Yemen for Djibouti More than 3,000 Yemeni refugees have arrived by boat in recent weeks as Iranian-backed Houthi rebels launch offensives along the Red Sea. The U.N. warns the number could spike to 10,000 by year's end. ## Houthis now 12 miles from Djibouti The rebels captured Yemen's port city of Mokha and strategic Mayun Island, positioning themselves just 12 miles from Djibouti's coast. This threatens a vital shipping chokepoint handling 12 percent of global maritime trade. ## Strategic location becomes a liability Djibouti has leased land to U.S., Chinese, Japanese, and European military bases for decades. Now the country's position across from Yemen exposes it to fallout from the Iran war. ## Djibouti already hosts 36,000 refugees The country has strained infrastructure and water access with existing refugees mainly from Somalia and Ethiopia. A population of just 1.2 million cannot absorb another wave without crisis. ## Finance minister warns of breaking point Djibouti's finance minister stated the country can no longer carry a regional burden and risks losing control of its coastline and shipping security if forced to absorb more displacement. > Djibouti can no longer afford to carry a regional burden. ## Houthis and al-Shabab growing closer The two militant groups have drastically expanded military and tactical cooperation in recent months. A closer alliance could enable greater arms smuggling and create a transregional expansion of war across the Horn of Africa. ## Al-Shabab profits from shipping chaos As Houthi attacks push maritime traffic closer to Somalia's coast, al-Shabab has integrated with pirate networks and takes an estimated 20 to 30 percent cut of ransom payments. ## U.S. extends African Union support Washington agreed to give the U.N. another year to phase out its 550 million dollar logistical support for African Union peacekeepers in Somalia. Security analysts warn faster withdrawal would weaken the ability to contain al-Shabab. ## U.N. refugee operation severely underfunded Djibouti's U.N. refugee agency operation is only 15 percent funded and requires urgent support to prepare for future arrivals from Yemen. Small nations say they are ill-equipped to handle overlapping Middle East and Horn of Africa crises. ## Israel recognizes Somaliland Israel's December recognition of Somaliland, likely made to monitor Houthi activity, may bring heightened insecurity to the region and turbocharge Houthi ties with al-Shabab. ## Ethiopia-Eritrea tensions escalate The U.S. lifted sanctions on Eritrea to court its strategic port near the Bab el-Mandeb Strait. But this has indirectly escalated tensions between Ethiopia and Eritrea as Addis Ababa seeks maritime access. ## Ethiopia's Tigray war reignites The Tigray People's Liberation Front seized airports in Mekelle, Shire, and Axum while forming an alliance with six other armed groups to challenge Prime Minister Abiy Ahmed's federal government. ## Ethiopia depends on Djibouti port Ethiopia relies on Djibouti's port for around 97 percent of its cargo. Rising Houthi attacks may restrict shipping there, pushing Addis Ababa to renew its bid for maritime access through Eritrea. ## Morocco holds parliamentary elections Moroccans vote Wednesday amid youth dissatisfaction with healthcare, education, and unemployment. Twenty-seven parties compete for 395 seats, though King Mohammed VI will appoint the prime minister. ## Nigeria's refinery reshapes fuel markets The Dangote Refinery has become Europe's top jet fuel supplier amid Middle East shortages. Yet Nigeria, a major oil producer, struggles to afford its own aviation fuel despite producing far more than it uses. ## Key takeaway Djibouti's strategic location has become a liability as Middle East conflicts spill into Africa, straining a small nation with limited resources to handle a growing humanitarian emergency.