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.

 



ICC Issues Arrest Warrants for Netanyahu, Hamas Officials

Israel's Prime Minister Benjamin Netanyahu addresses lawmakers in the Knesset, Israel's parliament, in Jerusalem. Monday Nov. 18, 2024. (AP Photo/Ohad Zwigenberg)
Israel's Prime Minister Benjamin Netanyahu addresses lawmakers in the Knesset, Israel's parliament, in Jerusalem. Monday Nov. 18, 2024. (AP Photo/Ohad Zwigenberg)
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ICC Issues Arrest Warrants for Netanyahu, Hamas Officials

Israel's Prime Minister Benjamin Netanyahu addresses lawmakers in the Knesset, Israel's parliament, in Jerusalem. Monday Nov. 18, 2024. (AP Photo/Ohad Zwigenberg)
Israel's Prime Minister Benjamin Netanyahu addresses lawmakers in the Knesset, Israel's parliament, in Jerusalem. Monday Nov. 18, 2024. (AP Photo/Ohad Zwigenberg)

The International Criminal Court issued arrest warrants on Thursday for Israeli Prime Minister Benjamin Netanyahu, his former defense minister and Hamas officials, accusing them of war crimes and crimes against humanity over the war in Gaza and the October 2023 attacks that triggered Israel’s offensive in the Palestinian territory.

The decision turns Netanyahu and the others into internationally wanted suspects and is likely to further isolate them and complicate efforts to negotiate a cease-fire to end the 13-month conflict. But its practical implications could be limited since Israel and its major ally, the United States, are not members of the court and several of the Hamas officials have been subsequently killed in the conflict.
Netanyahu and other Israeli leaders have condemned ICC Chief Prosecutor Karim Khan’s request for warrants as disgraceful and antisemitic.

US President Joe Biden also blasted the prosecutor and expressed support for Israel’s right to defend itself against Hamas. Hamas also slammed the request.

But the ICC said Thursday that Israel's acceptance of the court's jurisdiction was not required.

Israel launched its war against Hamas after militants stormed into southern Israel on Oct. 7, 2023, killing some 1,200 people, mostly civilians, and abducting another 250. Around 100 hostages are still inside Gaza, at least a third of whom are believed to be dead. Most of the rest were released during a cease-fire last year.

Health officials in the Gaza Strip said Thursday the death toll from the 13-month-old war has surpassed 44,000.

The Israeli offensive has also caused heavy destruction across wide areas of the coastal territory and displaced 90% of Gaza's population of 2.3 million people.

The court issued a warrant for Mohammed Deif, head of Hamas’ armed wing, over the Oct. 7 attacks that triggered Israel’s offensive in Gaza. It said it found reasonable grounds to believe Deif was involved in murder, rape, torture and the taking of hostages amounting to war crimes and crimes against humanity.

Khan withdrew his request for warrants for two other senior Hamas figures, Yahya Sinwar and Ismail Haniyeh, who have both since been killed. Israel says it also killed Deif in an airstrike, but Hamas has never confirmed his death.

The warrants for Netanyahu and Gallant were issued by a three-judge panel in a unanimous decision.
The panel said there were reasonable grounds to believe they “intentionally and knowingly deprived the civilian population in Gaza of objects indispensable to their survival,” including food, water, medicine, fuel and electricity.
The Israeli Foreign Ministry said in September that it had submitted two legal briefs challenging the ICC’s jurisdiction and arguing that the court did not provide Israel the opportunity to investigate the allegations itself before requesting the warrants.