World Bank: Houthi Blockade on Oil Exports in Yemen Worsens Food Security

Yemen’s GDP is projected to contract by 1% in 2024 (WB)
Yemen’s GDP is projected to contract by 1% in 2024 (WB)
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World Bank: Houthi Blockade on Oil Exports in Yemen Worsens Food Security

Yemen’s GDP is projected to contract by 1% in 2024 (WB)
Yemen’s GDP is projected to contract by 1% in 2024 (WB)

The World Bank said on Friday that the Houthi blockade on oil exports has led to the deterioration of food security in Yemen to unprecedented levels.
It stressed that Yemen’s economy continues to confront deepening challenges as prolonged conflict, political fragmentation, and escalating regional tensions drive the country into an even more severe humanitarian and economic crisis.
In the Fall edition of its Yemen Economic Monitor (YEM) entitled “Confronting Escalating Challenges,” the WB revealed that Yemen’s GDP is projected to contract by 1% in 2024, following a 2% decline in 2023, exacerbating the 54% drop in real GDP per capita since 2015.
It then affirmed that the conflict has pushed most Yemenis into poverty, while food insecurity has reached historic levels, with over 60% of the population now facing inadequate access to food.
The report also underscored the significant economic hardships caused by the continued Houthi blockade on oil exports, which contributed to a 42% drop in fiscal revenues for the internationally recognized government in the first half of 2024, preventing it from providing essential services to the population.
The suspension of the government oil exports, combined with a heavy reliance on imports, has intensified external pressures, leading to a depreciation of the Yemeni Rial in the Aden market from 1,619 per US dollar in January 2024 to 1,917 by the end of August, it noted.
Living Conditions Deteriorate
Since 2023, the WB report said living conditions have deteriorated drastically for the majority of the population.
In July 2024, World Bank phone surveys indicated that severe food deprivation more than doubled in some governorates.
Also, economic fragmentation between Houthi-held and government-controlled areas continues to worsen, with disparities in inflation and exchange rates undermining both stability and future recovery efforts.
Simultaneously, regional tensions, especially in the Red Sea, have led to a more than 60% reduction in traffic through the strategic Bab El-Mandeb Strait and the Suez Canal.
However, the report said these disruptions have not yet resulted in significant increases in consumer prices.
“Yemen’s economic and humanitarian challenges are growing more acute, yet the opportunity remains to reverse this downward trend with the right support,” said Dina Abu-Ghaida, WB Country Manager for Yemen.
She added that immediate action is required, including addressing fiscal and external imbalances, mitigating food insecurity, and fostering greater stability. “We remain committed to working closely with partners to support Yemen’s recovery and pave the way for a sustainable future.”
Potential Risks
In its report, the WB further detailed the potential risks to Yemen’s banking sector, which faced mounting tensions between the Houthis and government-controlled government over regulatory control in the first half of the year.
While regional and international mediation efforts have helped ease some tensions, the report said the situation remains fragile, and the report recommends strengthening institutional resilience to manage inflation and fiscal challenges.
It also suggests improving trade routes and access to financial services to ease economic pressures and prevent further fragmentation.
The report affirmed that Yemen’s economic outlook for 2025 remains bleak, with the continuation of regional conflict and internal strife threatening to deepen the fragmentation and worsen the social and humanitarian crisis.
However, it noted that a potential peace dividend could spur rapid economic recovery, should a durable peace agreement be reached.
“This would pave the way for vital external assistance, reconstruction, and reforms necessary to stabilize the country and its economy,” the report said.

 



Trump Says Must End Conflict in Lebanon

 Republican presidential nominee and former US President Donald Trump reacts after complaining about its sound during a campaign in Milwaukee, Wisconsin, US November 1, 2024. (Reuters)
Republican presidential nominee and former US President Donald Trump reacts after complaining about its sound during a campaign in Milwaukee, Wisconsin, US November 1, 2024. (Reuters)
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Trump Says Must End Conflict in Lebanon

 Republican presidential nominee and former US President Donald Trump reacts after complaining about its sound during a campaign in Milwaukee, Wisconsin, US November 1, 2024. (Reuters)
Republican presidential nominee and former US President Donald Trump reacts after complaining about its sound during a campaign in Milwaukee, Wisconsin, US November 1, 2024. (Reuters)

Republican US presidential candidate Donald Trump on Friday, speaking to an audience including Arab Americans in the battleground state of Michigan, said it was time to get the Israel-Lebanon conflict over with.

"I know many people from Lebanon and we have to get this whole thing over with," he said.

Trump on Friday met with Arab Americans in Dearborn, Michigan — the nation’s largest Arab-majority city — as the Republican presidential nominee works to court the potentially decisive group despite his history of Islamophobic rhetoric and policy.

Trump was greeted with cheers and applause from a modest crowd at The Great Commoner restaurant in one of his campaign’s final attempts to garner support in the key battleground state.

Metro Detroit is home to the nation’s largest concentration of Arab Americans, with a large chunk of them living in Dearborn. The city — which Democrat Joe Biden won by a 3-to-1 margin in 2020 — has been roiled by political turmoil, with many upset with the Biden-Harris administration’s handling of the Israel-Hamas war.

Democrats worry that anger over the war will lead traditionally loyal voters to shift their votes to Trump or third-party candidates like Jill Stein — or skip the top of the ballot altogether. This could prove pivotal in Michigan, a state both parties see as a toss-up.

While the Democratic presidential nominee, Vice President Kamala Harris, has been working through surrogates to ease community tensions, Trump’s visit marked the first by either candidate, according to a local leader, Osama Siblani. Earlier this year, Harris met with the city’s Democratic mayor, Abdullah Hammoud, though their discussion took place outside Dearborn.

The meeting with Arab supporters Friday follows Trump’s rally in Michigan last week, when he brought local Muslims up onstage with him. Trump has also received endorsements from two Democratic mayors of Muslim-majority cities.

"It is time to prioritize our nation’s best interests and foster lasting peace for all," Albert Abbas, an Arab American, said Friday while standing next to Trump. "This current administration has failed miserably in all aspects of humanity."

He added, "We look to a Trump presidency with hope and envisioning a time where peace flourishes, particularly in Lebanon and Palestine."

While many Democratic leaders in the Arab community have not endorsed Harris, they are still deeply negative toward Trump and say his endorsements don’t reflect a majority of the community. They remember his call for a "total and complete shutdown" on Muslims entering the country and his travel restrictions on visitors from Muslim-majority countries. And some point out that Trump has suggested he would give Israel even more leeway to attack its rivals in the region.

Top community leaders in Dearborn, including Hammoud, declined an invitation to meet with Trump while he was in town. Many community leaders say that while Harris has never earned their endorsement, they are still overwhelmingly opposed to Trump.

Siblani, a prominent figure in the community who has engaged with Democratic leaders about ongoing tensions, noted that many "do not trust" Trump because of his past policies and remarks. However, he emphasized the significance of Trump’s visit to Dearborn.

"Kamala should have done this months ago," Siblani said.

Harris defended her record on the issue Friday, telling reporters that she’s "proud to have significant amount of support from the Arab American community," while adding that she continues to push for a ceasefire in Gaza and the release of hostages.

Israel invaded Gaza after Hamas’ Oct. 7, 2023, attack and last month launched an invasion of Lebanon to suppress Hezbollah, the party that has continuously launched rockets into Israeli territory. At least 43,000 people have died in Gaza, according to Gaza’s health ministry, which does not distinguish in its death toll between combatants and civilians.

Abbas said Trump allies had reached out to him several weeks ago about hosting Trump in Dearborn. Before hosting Trump, Abbas said he wanted to see a statement from Trump that he said showed Trump "has the intentions of ending the war and helping us rebuild Lebanon and helping the displaced and the injured."

That statement came Wednesday, when Trump posted on X that he wanted to "stop the suffering and destruction in Lebanon."

"I will preserve the equal partnership among all Lebanese communities," Trump said on X. "Your friends and family in Lebanon deserve to live in peace, prosperity, and harmony with their neighbors, and that can only happen with peace and stability in the Middle East."

Once Trump put out the statement, Abbas said he agreed to host the event.