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With the Eritrean-Ethiopian War ( 1998 – 2000 ), Ethiopia channeled most of its trade through Djibouti.
Though Djibouti is nominally neutral, it broke off relations with Eritrea in November 1998, renewing relations in 2000.
Eritrea's President Isaias visited Djibouti in early 2001 and President Ismail Omar Guelleh made a reciprocal visit to Asmara in the early summer of 2001.
While Djibouti ’ s President Ismail Omar Guelleh has close ties with Ethiopia ’ s ruling Ethiopian People's Revolutionary Democratic Front ( EPRDF ), he has tried to maintain an even hand, developing relations with Eritrea.
On June 10, 2008 clashes broke out in the Ras Doumeira region between Djibouti and Eritrea.

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