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The Economic Times
The Economic Times

Yemen's Houthis considering fees for ships sailing through Red Sea, sources say

LONDON/DUBAI: Yemen's Houthi group is considering imposing fees on commercial ships sailing through the southern Red Sea, a week after declaring a naval blockade on Saudi Arabia, regional sources with knowledge of the matter told Reuters.

The Iran-aligned Houthis on July 20 declared a maritime embargo against Saudi Arabia, opening a new front against the U.S. and its allies in the Iran war and expanding attacks on tankers carrying global energy and other supplies to waters beyond the Gulf.

Also Read: India's energy security at risk from Hormuz-Red Sea double squeeze, says CareEdge Ratings

The Houthis were looking into ‌imposing fees on most ⁠traffic through the ⁠narrow Bab el-Mandeb gateway, which links the southern Red Sea with the Gulf of Aden, the sources said. No timeframe was given at this stage for implementation, they added.

The Houthis' media office did not respond to a request for comment.

Houthi officials travelled to Iran in July for the funeral ceremony of late Supreme Leader Ayatollah Ali Khamenei, where Iranian counterparts discussed with them the issue of imposing fees on Bab el-Mandeb transits, two regional officials briefed by Tehran told Reuters.

The objectives of such a move would be to normalise the practice of imposing fees on international waterways and increase pressure on the United States, the sources said. Chinese ships would be exempted from such fees and the Houthis were supportive of the arrangement, they added.

Also Read: Ships transiting via Bab el-Mandeb strait at highest in a week, data shows

China has held direct talks ⁠with the Houthis ‌to enable its tankers to sail through the southern Red Sea without being attacked, sources have told Reuters. China is the world's biggest buyer of Saudi Arabian oil.

IRANIAN ADVISERS GUIDE FEE PLAN

Houthi officials who returned by plane from Tehran were accompanied by Iranian advisers ⁠who were on the ground to guide them on setting up a potential authority that will regulate fees through the Bab el-Mandeb, an Arab official in the region said.

"The Houthis will try to gain access over the Red Sea and they will try to charge ships if they do," Afrah al-Zouba, foreign minister-designate with Yemen's internationally recognised government, told Reuters.

Such a move would face strong opposition from Gulf and European countries, although overstretched international naval forces are currently unable to provide sufficient protection for merchant shipping and there is little political appetite to change that, two Western diplomats said.

Tehran has ruled out Oman's proposal for regional joint management of the Strait of Hormuz that would include voluntary fees from ships, a senior Iranian official told Reuters on Wednesday, scuppering hopes for a resolution to the impasse ‌that has choked off Gulf trade in that chokepoint for months.

Also Read: Ukraine Odesa port attack: India launches search operation with Ukrainian authorities to trace 2 missing seafarers

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