Ethiopia–Djibouti trade risk: Djibouti urged de-escalation as fighting between Ethiopia’s federal forces and the TPLF intensifies, with reports of towns changing hands in Afar and Tigray and fears of a return to the 2020–2022 war—an especially sensitive issue for Djibouti given Ethiopia’s heavy reliance on the Djibouti corridor for seaborne cargo. Red Sea pressure on logistics: Analysts warn that Houthi control around Bab el-Mandeb (including Perim and Mocha) could turn selective disruption into sustained pressure, raising freight costs and hitting Ethiopia’s corridor; Djibouti also appealed for international support as Yemeni arrivals surge. $660m fuel pipeline boost: Dangote-backed financing for a $660 million Ethiopia–Djibouti refined fuel pipeline (Damerjog to Dewele) was highlighted as a major energy-security and logistics game-changer, with leaders linking it to lower delivery times and stronger regional trade. Djibouti energy build-out: Djibouti began work on a new Damerjog petroleum terminal with large storage and processing capacity aimed at securing regional fuel supply. Humanitarian strain: UNHCR reported thousands of Yemenis crossing to Djibouti in recent days, underscoring mounting pressure on shelter, food, and healthcare. Regional security spending: EU officials urged more naval assets for the Red Sea mission Aspides as threats rise and current ship numbers fall short. Development finance: AGFUND signed four deals in New York supporting digital finance, AI, climate-risk micro-insurance, and youth engagement across the region, including Djibouti and Ethiopia.