Yemen’s Houthis considering fees for ships traversing the Red Sea, sources say

The Iran-aligned Houthi group is considering imposing fees on commercial ships passing through the southern Red Sea, a week after declaring a naval blockade on Saudi Arabia. Regional sources told Reuters the group is exploring fees on most traffic through the Bab el-Mandeb strait, with Chinese ships exempted. Iranian advisers are reportedly guiding the plan. The move would face strong opposition from Gulf and European countries, but overstretched international naval forces are currently unable to provide sufficient protection for merchant shipping.

Yemen's Houthi rebels are considering imposing fees on commercial ships sailing through the southern Red Sea, a week after declaring a naval blockade on Saudi Arabia, regional sources told Reuters. The Iran-aligned group is exploring fees on most traffic through the narrow Bab el-Mandeb gateway, which links the Red Sea to the Gulf of Aden. No timeframe was given. Chinese ships would be exempt, and the Houthis are supportive of that arrangement. Houthi officials traveled to Iran in July for the funeral of slain Supreme Leader Ayatollah Ali Khamenei, where Iranian counterparts discussed the fee plan. Iranian advisers are on the ground to guide setting up a potential authority to regulate fees. The objectives would be to normalize imposing fees on international waterways and increase pressure on the United States. The move would face strong opposition from Gulf and European countries, but overstretched international naval forces are currently unable to provide sufficient protection for merchant shipping. Saudi Arabia faces a supply threat if the Bab el-Mandeb is closed, as it would deprive the kingdom of a critical alternative to the Strait of Hormuz. Red Sea traffic has not fully recovered since Houthi attacks began in November 2023, which only ended with the Gaza ceasefire last October. At least one Saudi tanker has been attacked in the past week. The Houthis were previously alleged to have collected fees from some shipping agencies in 2024 in exchange for safe passage, according to a UN report, with fees estimated at $180 million a month, though unverified.