on Wednesday 10 April, 2024

Yemen suffers $2 billion revenue loss from halted oil exports amid Houthi assaults

A boy holds a rifle as he takes part in a pro-Palestinian protest by Houthi supporters in Sanaa, Yemen February 18, 2024. (credit: REUTERS/KHALED ABDULLAH)

Yemeni Prime Minister Ahmed Awad bin Mubarak revealed Tuesday that Yemen has faced a loss exceeding $2 billion in revenue due to halted oil exports. This financial blow came as a result of the Houthi faction's targeted assaults on the nation's export facilities.

Speaking to local authorities in Mukalla, the seat of Hadramout province, bin Mubarak highlighted the economic strain inflicted by the Houthi offensive that commenced with an attack on the Dhabah oil terminal in October 2022.

“Last year, we lost approximately 3 trillion Yemeni riyals, or approximately 2 billion US dollars, of our revenues after we were prevented from exporting oil,” bin Mubarak detailed. He further criticized the Houthis for the death of over 300 Yemenis in the last quarter, undermining the temporary peace established by a UN-mediated ceasefire that ended in early October 2022.

According to the prime minister, these actions underscore the ongoing hostilities with the Houthi group.

Oil exportation

Oil exportation is a critical pillar of Yemen's economy, constituting 75% of the government's budget. The insurgent's attacks on essential oil infrastructure have plunged the government into a financial quagmire, complicating efforts to remunerate public sector workers and maintain fuel supplies for power generation in territories under its administration.

Since 2014, Yemen has been ensnared in a fierce civil war, beginning with the Houthi's capture of Sanaa. The following year saw the intervention of a Saudi-led coalition aiming to reinstall the government. Despite international attempts at peace, a resolution remains elusive in a conflict that the UN claims has resulted in the death of hundreds of thousands and pushed millions to the edge of starvation.