Washington: Houthi Blockades Worsen Humanitarian, Economic Crisis in Yemen

Ambassador Linda Thomas-Greenfield, US Representative to the United Nations (AFP)
Ambassador Linda Thomas-Greenfield, US Representative to the United Nations (AFP)
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Washington: Houthi Blockades Worsen Humanitarian, Economic Crisis in Yemen

Ambassador Linda Thomas-Greenfield, US Representative to the United Nations (AFP)
Ambassador Linda Thomas-Greenfield, US Representative to the United Nations (AFP)

The US on Tuesday urged all the Yemeni parties to cooperate with the UN Special Envoy and to meaningfully participate in future Yemeni-Yemeni talks, stressing that Yemenis are rightfully anxious to see progress on peace efforts.

US Representative to the United Nations, Ambassador Linda Thomas-Greenfield said the Houthis continue to block oil exports, further exacerbating Yemen’s humanitarian and economic crisis.

At a UN Security Council briefing on Yemen, the US ambassador said some Yemenis are suffering from continued – and even increased – restrictions on the flow of goods, including Houthi impediments to the sale of cooking gas, and to the movement of other goods from southern Yemen to the North.

“The Houthis also continue to block oil exports, further exacerbating Yemen’s humanitarian and economic crisis,” Thomas-Greenfield added.

On Monday, the UN Security Council unanimously adopted a resolution to extend the mandate of the UN Mission to Support the Hodeidah Agreement (UNMHA) for another year, till July 14, 2024.

“Renewing this mandate means the UN mission will continue to support the ceasefire on the western coast of Yemen,” it wrote.

Thomas-Greenfield said the United States welcomes the renewal of UNMHA’s mandate for an additional year.

Concerning the peace operation in Yemen, she noted that Yemenis are rightfully anxious to see progress on peace efforts.

“Progress will require the Yemeni parties to come together to negotiate complex issues, like the use of Yemen’s sovereign resources to pay public salaries,” she said, urging the parties to cooperate with the UN Special Envoy and to meaningfully participate in future Yemeni-Yemeni talks.

Later, the US ambassador thanked the UN for its updates and its perseverance in addressing the Safer oil tanker, together with the UN Development Program, despite noting that much more needs to be done.

“The Safer operation represents a model for international cooperation on Yemen,” Thomas-Greenfield said.

She then called for maintaining momentum and securing the additional $25 million needed to complete both phases of the Safer operation. The US representative also encouraged private sector donors to support the UN’s plan to avoid a catastrophe.

At the same time, Thomas-Greenfield said, “We must balance efforts like the Safer operation with the need to continue providing life-saving humanitarian assistance.”

She said the UN’s humanitarian response in Yemen remains dangerously underfunded, and that cuts to assistance would have dire consequences for Yemenis at a time when famine conditions are poised to re-emerge.

Meanwhile, Hans Grundberg, Special Envoy of the Secretary-General for Yemen, informed the 15-nation organ that, despite the expiry of the truce, Yemen and its people continue to feel the benefits from the longest period of relative calm since the beginning of the conflict.

He added that the truce contributed to a 40 per cent decrease in grave violations against children.

However, more progress is needed, he pointed out.



Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
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Iraq Faces 2025 Fiscal Squeeze Amid Oil Price Decline, Adviser to PM Says 

A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)
A general view shows an oil rig used in drilling at the Zubair oilfield in Basra, Iraq, July 5, 2022. (Reuters)

Iraq faces a budget crunch in 2025 due to the slump in the price of oil, the overwhelming source of government revenue, a top economic adviser to Prime Minister Mohammed Shia al-Sudani said.

"We don't anticipate major problems in 2024, but we need stricter financial discipline for 2025," Mudher Saleh told Reuters in an interview late on Monday.

Iraq, OPEC's second-largest producer, is heavily dependent on oil revenues. The hydrocarbons sector accounts for the vast majority of export earnings and some 90% of state revenue.

This huge reliance on oil makes Iraq particularly vulnerable to fluctuations in global crude prices.

Still, Iraq increased its budget in 2024 even after record spending in 2023, when more than half a million additional employees were hired into the already-bloated public sector and a capital-intensive nationwide infrastructure revamp began.

The 2024 budget rose to 211 trillion dinars ($161 billion) from 199 trillion dinars ($153 billion) in 2023, maintaining a projected deficit of 64 trillion dinars, Saleh said.

The budget assumes an oil price of $70 per barrel in 2024, around $6 less than the likely average price this year.

Saleh said that paying salaries and pensions on time remain a top priority. They account for 90 trillion dinars ($69 billion), or over 40% of the budget, and are a key factor of social stability in Iraq.

"The government will pay salaries even if it costs everything. Salaries are holy in Iraq," he said.

Infrastructure development, meanwhile, could be refocused on the most strategic projects - such as key road and bridge works in the capital Baghdad - if the state finds itself in a financial crunch, he said.

To bolster finances, Iraq is focusing on increasing non-oil revenues through improved tax collection but is not exploring any new levies, Saleh said.

He estimated that Iraq loses up to $10 billion annually due to tax evasion and customs-related problems.

Concerns for the 2025 budget reflect a challenging global oil market. Oil prices have been on a downward trend since mid-2022, with Brent crude, the international benchmark, falling from over $120 per barrel to below $75 in recent days.

This decline is largely attributed to weakening global demand, particularly from China, the world's largest oil importer, as its economic growth slows down.