Yemen’s Houthis are actively considering toll fees in the Bab El-Mandeb Strait, mirroring Iran’s action in the Strait of Hormuz, according to Reuters.
The Houthis are reportedly working with Iran to put the policy into action, according to Yemen’s information minister, who is part of Yemen’s officially recognised government.
Strain on Global Oil Markets
Russell reported last week of fears among Maritime experts that the Houthis were poised to attack vessels in the Red Sea. Yet, the introduction of toll fees will gain send another shudder through global oil markets, that are feeling the pinch from depleting oil exports from Hormuz.
Saudi Arabia Exports Fall
Since the embargo was imposed on Saudi vessels in the Bab El-Mandeb strait, the flow of Saudi trade through the Bab El-Mandeb Strait has fallen dramatically, as analysis by Russell can reveal.
On 20th July, the day of the embargo was imposed, the daily transit flow from Yanbu, the main Saudi port facing the Strait, was $67 million. Yet, this daily figure dropped to $13 million, a few days later.
This decline impacted Saudi Arabia’s total daily trade, which fell from $981 million on 20th July to $552 million on 27th July. This mirrored a similar decline in the same period last year too.
Therefore, it was no surprise that Saudi Arabia along with 13 other countries announced the creation of a maritime military coalition to safeguard transits through the Bab El-Mandeb strait, the Red Sea and Gulf of Aden.
