US Envoy to Yemen Says Houthis Are Suffering from a Liquidity Crisis

US Special Envoy for Yemen Tim Lenderking. (Asharq Al-Awsat)
US Special Envoy for Yemen Tim Lenderking. (Asharq Al-Awsat)
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US Envoy to Yemen Says Houthis Are Suffering from a Liquidity Crisis

US Special Envoy for Yemen Tim Lenderking. (Asharq Al-Awsat)
US Special Envoy for Yemen Tim Lenderking. (Asharq Al-Awsat)

US Special Envoy to Yemen Tim Lenderking said the Iran-backed Houthi militias in Yemen were facing economic pressure and were trying to escape this crisis by launching attacks on ships in the Red Sea.

Lenderking was speaking from Oman where he met with Foreign Minister Badr Al-Busaidi. The envoy had also visited Saudi Arabia on his latest tour of the region.

At a digital press briefing, he noted the Houthis’ introduction of a new coin in some parts of Yemen. “What this shows us is that there is economic pressure that the Houthis are facing,” he said in response to Asharq Al-Awsat's question about the new currency.

“I’ve talked about the economic pressure that the Houthis are placing on international shipping, which is harming regional economies, but it’s also harming Yemen. I would point to a 15 percent reduction in ships being able to dock at Hodeidah Port, which is a lifeblood for the Yemeni people,” he went on to say.

“These actions on Red Sea shipping have obstructed humanitarian supplies from reaching the Yemeni people. And that’s why we say that these attacks are misplaced and why they’re reckless and indiscriminate,” stressed Lenderking.

“This introduction of a new coin shows is economic pressure that is being felt by the Houthis. There is a liquidity crisis in Yemen,” he remarked.

“What this all points to is the importance of returning Yemen to a period of stability where its economic resources can be used to promote stability and benefit for all Yemenis, where salaries can be paid according to the terms of the UN roadmap, where Yemen’s fisheries are not endangered by attacks on oil tankers and other ships that could threaten these vital ecosystems,” he continued.

“That’s, again, why we need to make this push toward the Yemen peace effort, which will help the humanitarian situation and also help Yemen – Yemenis rebuild their economy,” he added.

On the Houthi attacks in the Red Sea, Lenderking said: “The Houthis claim that their actions are a response to the conflict in Gaza, but their attacks only hurt ordinary people in the region.”

“These negative impacts are due exclusively to Houthi recklessness and Iran’s efforts to sow instability across the region. These attacks serve nothing more than a narrow Houthi agenda. Iran continues to enable these attacks through arms funding and intelligence support to the Houthis, reminding the world that they are the leading sponsor of terrorism,” he declared.

“The Houthis’ attacks against civilians and commercial ships are acts of terrorism. This is further exemplified by their seizure last November and continued unlawful detention of the MV Galaxy Leader and its 25-member crew,” he noted.

“Houthi attacks must stop so we can return our focus to the Yemen peace effort and direct our full attention towards supporting the Palestinians and their legitimate aspirations for a two-state solution, which Houthi behavior, frankly, is complicating and undermining,” Lenderking stressed.

“Houthi actions endanger the lives of civilian seafarers, disrupt the flow of food and other essential commodities to people worldwide, undermine navigational rights and freedoms, and irreparably harm the marine environment and sensitive ecosystems that Yemeni fishermen depend on,” he went on to say.

“The Houthi attacks are raising prices for consumers and jeopardizing the regional development goals of countries in the region that depend on shipping and international trade, including Oman. These attacks are also not helping Yemen, which remains in dire need of humanitarian and economic support,” he said.

“My hope as the envoy for Yemen is that we can find diplomatic offramps to find ways to de-escalate,” he stated. “We favor a diplomatic solution. We know that there is no military solution.”

Moreover, Lenderking highlighted the role played by Saudi Arabia in building trust and bridging the divide between Yemen’s legitimate government and the Houthis.

This “gives us some hope that we can use this moment to get beyond current tensions and refocus on what the Yemeni people need, which is an end to this nine-year civil war,” remarked the envoy.

“I do think that ultimately diplomatic solutions will have to be found, and again, that’s why the importance of consulting with regional partners who have such a strong stake in a peaceful outcome to this conflict – Oman, Saudi Arabia, and others,” he said. “We all want Yemen to be a source of stability for the region.”

Furthermore, he stressed that the US remains fully committed to supporting lasting peace in Yemen and the UN-backed peace process, and easing the humanitarian and economic crises.



Houthis in Yemen Strip their Head of Govt of his Powers

The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)
The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)
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Houthis in Yemen Strip their Head of Govt of his Powers

The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)
The Houthis prevented Ahmed al-Rahwi from naming the head of his office. (Houthi media)

The Iran-backed Houthi militias have prevented their so-called prime minister, Ahmed al-Rahwi, from naming the head of his office.

The Houthis have instead forced him to appoint a person of their choosing against his wishes, revealed informed sources in the Houthi-held capital Sanaa.

The Houthis are attempting to strip al-Rahwi, who was named as head of the militias’ new government, of his powers, making his appointment simply a cover for imposing their agenda and favoring Houthis who are descended of the line of their leader Abdulmalik al-Houthi.

The sources revealed that al-Rahwi had headed to the government headquarters with Rabih al-Mehdi, the director of the office of his predecessor. Mehdi hails from the Abyan province that is held by the legitimate government.

Al-Rahwi was seeking to keep al-Mehdi in his post. However, a leading Houthi member, Mohammed Qassem al-Kabisi, who used to occupy the position of government secretary, barred him from making the appointment.

Kabisi even prevented al-Mehdi from entering his office, resulting in an argument with al-Rahwi.

Kabisi informed al-Rahwi that he had no authority in naming the head of his office, saying that he does instead.

Al-Rahwi turned to the Houthis’ so-called ruling high political council to resolve the dispute and was informed that he should accept Kabisi as head of his office despite his objection.

A decree was issued days later naming Kabisi to the post.

He will effectively hold absolute power in government, while al-Rahwi will simply play a figurative role and only be needed to approve decisions and procedures taken by the Houthi leadership, joining other ministers who have no real duties.

The Houthis have formed a new government that will follow in the footsteps of its predecessor in keeping actual power to the militias themselves.

The new lineup includes a pro-Houthi figure, with no diplomatic background or experience, who was named foreign minister, replacing leading General People's Congress member Hisham Sharaf.

The appointment only fueled claims that the Houthis were seeking to eliminate their partners from rule. Al-Rahwi himself had no say in the lineup.

The Houthis announced the formation of their government on August 12. It met on August 17 to discuss its program, referred it to parliament the same day and by the next morning, an announcement was made that it was approved with no amendments or objections.

The incident with al-Rahwi has fueled speculation that the coming period will witness more struggles for power among the Houthis and their partners, whom they are trying to keep out of rule.

Observers noted that Kabisi is the son of a top Houthi leader. Qassem al-Kabisi is one of the founders of the group and is close to their leader Abdulmalik al-Houthi.

The senior Houthi officials believe they have the right to represent the Houthis in rule since they are its founders and oldest members.