Houthi Threats to Shipping Warn of New Wave of Price Hikes in Yemen
The continued Houthi threats to international shipping raise Yemenis' fears of a new wave of price hikes, with expectations of rising shipping and insurance costs and worsening livelihood crisis.
At a time when Yemen faces one of the worst humanitarian and economic crises in the world, renewed threats by the Houthi group to target commercial shipping in the Red Sea and the Bab el-Mandeb Strait are raising growing fears of direct repercussions on the lives of millions of Yemenis, who may find themselves facing a new wave of price increases and declining basic services each time.
Commercial sources in Sanaa say that markets in Houthi-controlled areas are currently witnessing a rising wave of price hikes for basic commodities, as threats to target international shipping continue.
The sources add that both traders and consumers are facing increasing pressures due to the group's arbitrariness, looting, and illegal extortion, exacerbating families' suffering and deepening the livelihood crisis.
The Houthis control the port of Hodeidah and channel revenues to the war effort (Houthi media).
The sources indicated that millions in areas under Houthi control are not following news of the escalation in the Red Sea as distant events, but rather consider it an additional threat that draws closer day by day to the details of their daily lives.
Residents in Sanaa and other Houthi-controlled areas fear that continued tension will lead to more economic pressures, whether through higher prices, declining commercial activity, or increased difficulty in obtaining some goods and services, expressing their growing concern that they will be the first to pay the price of this escalation, amid a battered economy and a years-long humanitarian crisis.
Anticipation and Fear
Naser, a government employee in Sanaa, is anxiously awaiting the repercussions of any potential Houthi escalation in the Red Sea, amid his salary being withheld for years and his repeated inability to secure his children's needs.
Jamil tells Asharq Al-Awsat: 'We can no longer bear the successive waves of price hikes. Any new tension could prolong the war and double the suffering, especially with the ongoing salary crisis. It directly affects the prices of food, medicine, and fuel, while our incomes and those of many families remain fixed and do not keep up with the rising cost of living.'
Saeed from Hodeidah governorate adds: 'We hear about conflicts at sea, but their effects reach us directly in the markets. When transport and shipping costs rise, we end up paying the price.' He confirmed there are currently noticeable increases in the prices of many basic commodities.
A popular market in the center of the Yemeni capital Sanaa, which is under Houthi control (Asharq Al-Awsat)
Yemen relies heavily on imports to cover its basic needs, making disruption of shipping traffic and increased shipping and insurance risks a pressure factor on commodity prices in local markets. Reports have warned that rising maritime transport and insurance costs could exacerbate the burden on Yemeni consumers.
In a rural area of Sanaa, Sadiq, a family head and unemployed, says: 'We have started calculating the value of everything before buying it. Any new crisis means the family will give up more of its needs.'
A merchant from the city of Ibb tells Asharq Al-Awsat: 'The merchant is also affected. The increase in import and transport costs impacts everyone, from the shop owner to the citizen buying the commodity.'
Daily Burdens
While the Houthi insurgents' threat to target international commercial shipping continues, Yemenis in areas under their control remain among the most affected, as regional developments turn into daily burdens affecting food, medicine, income, and job opportunities.
Observers believe that continued tension in the Red Sea could open the door to mutual military responses, increasing the likelihood of an expanded confrontation in the region and placing Yemen at the heart of a regional conflict whose repercussions transcend its geographical borders, while the Yemeni citizen remains the most affected party.
Houthi extortions have doubled the prices of basic commodities (E.P.A.)
Economic experts also warn that any escalation that disrupts shipping or increases risks to commercial vessels will push global shipping companies to raise transport and insurance fees or change their routes, which practically translates into higher costs for imported goods reaching Yemeni markets.
Given the suspension of salaries, declining purchasing power, and high poverty rates, any new price increase will multiply the suffering of Yemeni families.
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Original source: Asharq Al-Awsat
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