The Houthis, who have been accused of ties with terror groups such as Al-Qaeda, Hezbollah, and Al-Shabaab, are reportedly earning up to $180 million a month by charging shipping operators hefty tolls for safe passage through the Bab el-Mandeb Strait and the southern Red Sea.
With tensions escalating, the Houthis have capitalized on their strategic control of critical shipping routes that link the Indian Ocean to the Mediterranean, forcing companies to pay for protection as they navigate through the region. This lucrative toll collection has raised alarms in the global shipping industry, with concerns that the Houthis will continue to leverage this income, making it harder to resolve the broader regional conflict.
In recent developments, the Yemeni Armed Forces issued a stern warning against any attempts to circumvent their blockade by selling, re-flagging, or transferring ownership of ships. The military has explicitly targeted vessels with ties to Israel, and reports suggest that Israeli-linked shipping companies may be trying to transfer assets in an effort to evade the sanctions imposed by Yemen. Brigadier General Yahya Sarie confirmed that intelligence reports show these companies attempting to "circumvent punitive measures" by re-registering ships under different names.
The Red Sea crisis has already taken a toll on the global economy. The Suez Canal, a vital artery for global trade, has seen a sharp decline in revenues, with Egypt’s Foreign Minister Badr Abdelatty estimating losses in the billions. The UN report also highlights that these diversions and the threats of ongoing disruption in the Red Sea have cost the Suez Canal $6 billion in lost revenues. Should the situation escalate further and the strait be blocked for an extended period, the economic fallout could be catastrophic, affecting not just Egypt but the global shipping industry as a whole.
The rise of the Houthis as a dominant force in the region has made it clear that the conflict in Yemen, with its growing implications on global trade and security, is no longer just a localized issue. As the Houthis continue to exploit their control over the Red Sea’s maritime lanes, the situation threatens to destabilize the broader region, and efforts to resolve the crisis face increasing complexity.
