Red Sea Shipping Pressure: EU Aspides escort shortages are leaving merchant ships waiting near Bab el-Mandeb, with Italy saying it will only add warships if other European countries step up; the squeeze matters for Djibouti because most of Ethiopia’s cargo and fuel still flows through its corridor. Horn-of-Africa Security Spillover: Ethiopia’s renewed confrontation with Eritrea and wider regional tensions are reshaping Saudi Arabia’s Red Sea calculations, while analysts warn the Horn is becoming a western edge of a wider Middle East war. Diplomatic Shock in the Horn: Ethiopia closed its Asmara embassy and expelled Eritrean diplomats after a drone attack in Addis Ababa, escalating fears that the conflict could widen and disrupt regional stability. Fuel Corridor Upgrade: Ethiopia and Djibouti are moving ahead with the Damerjog–Dewele petroleum products pipeline, aimed at boosting fuel security and cutting reliance on less reliable road transport. Industrial Investment Signal: Dangote’s East Africa refinery in Lamu (700,000 bpd) broke ground, with expectations for major jobs and logistics activity across the LAPSSET corridor. Maritime Risk Costs: War-risk premiums for Red Sea tankers jumped sharply after Houthi advances, raising transport costs for routes Ethiopia still needs. Yemen Hunger Impact: UN/WFP warns three in four households in accessible Yemen areas are going hungry as fighting disrupts food supplies and aid access. Djibouti Connectivity Detail: The US Navy says 90% of its unaccompanied housing in Djibouti and elsewhere now has free Wi‑Fi, supporting personnel readiness. Regional Economic Snapshot: Kenya ranked 10th in Africa for estimated net monthly take-home pay, while Djibouti topped the continent in the same dataset.