The big picture: Yemen’s Houthi group is considering imposing fees on commercial ships sailing through the southern Red Sea, Reuters reported on Wednesday. Consequently, this development expands regional tensions one week after the militia declared a naval blockade against Saudi Arabia. The Iran-backed militia aims to expand its operational influence across strategic trade chokepoints beyond the Gulf region. Regional sources told Reuters that Houthi leaders plan to charge vessels transiting the Bab El-Mandeb strait.
Why it matters: The narrow gateway links the Red Sea directly to the Gulf of Aden. Therefore, new maritime fees could severely disrupt global energy security and international supply chains. These proposed transit tolls threaten to increase consumer costs globally while raising war-risk insurance premiums for commercial fleet operators.
Specifically, disruption of the strait deprives Saudi Arabia of a critical alternative to the Strait of Hormuz. Consequently, energy markets fear severe oil supply shortages. In addition, China stands as the world’s largest buyer of Saudi crude oil.
A New Front in the Iran War
On 20 July, the Houthis announced a maritime embargo against Saudi Arabia. Consequently, they opened a new front against the US and its allies in the broader Iran war, and they expanded attacks on tankers carrying energy supplies far beyond the Gulf.
According to Reuters, the Houthis are now examining fees on most traffic through the narrow Bab El-Mandeb strait, which connects the southern Red Sea to the Gulf of Aden. However, they have set no timeframe for implementation, and the Houthis’ media office did not respond to a request for comment.
Houthi officials travelled to Iran in July for the funeral of late Supreme Leader Ayatollah Ali Khamenei, where Iranian counterparts discussed the fee proposal with them, two regional officials briefed by Tehran told Reuters. The goal, sources say, is to normalise charging for passage through international waterways while increasing pressure on Washington.
China’s Exemption Raises Stakes
Chinese vessels would be exempt from any new fees, and the Houthis reportedly support that arrangement. China, the world’s largest buyer of Saudi oil, has already held direct talks with the group to keep its tankers safe. Furthermore, Iranian advisers returned to Yemen with Houthi officials to help establish an authority regulating Bab el-Mandeb fees.
“The Houthis will try to gain access over the Red Sea and they will try to charge ships if they do,” said Afrah al-Zouba, foreign minister-designate with Yemen’s internationally recognised government.
Meanwhile, two Western diplomats say Gulf and European countries would strongly oppose such a step. Still, stretched international naval forces currently cannot fully protect merchant shipping, and governments show little appetite to change that.
By the numbers:
- 16 days: Average transit time for vessels traveling through Bab El-Mandeb to Asian markets.
- 50 days: Travel time if ships reroute around the northern Red Sea, Suez Canal, and southern Africa.
- $180 million: Monthly fees Houthis previously gathered in 2024, according to unverified United Nations panel reports.
What’s next: Furthermore, Houthis recently attacked two Saudi tankers near the southern port of Jizan. Red Sea traffic has not fully recovered since Houthi strikes began in late 2023 when the group launched attacks in solidarity with Palestinians in Gaza.
Gulf and European nations strongly oppose new tolls. However, overstretched international naval forces currently lack sufficient capacity to guarantee merchant vessel protection. Consequently, shipping lines face heightened financial risks across vital global trade routes. Unless international coalitions intervene, regional stability and freedom of navigation will face persistent security threats.
Should the Houthis close the Bab El-Mandeb, Saudi Arabia would lose a vital alternative to the Strait of Hormuz, raising fears of oil supply shortages. Red Sea traffic still has not fully recovered since Houthi attacks began in November 2023; those attacks only ended with last October’s Gaza ceasefire.
