Yemen's Houthi group is reportedly considering the imposition of fees on commercial ships transiting the southern Red Sea, according to regional sources. This move follows the group's declaration of a naval blockade against Saudi Arabia and could echo Iran's past demands for tolls in the Strait of Hormuz. The potential fees target traffic through the Bab el-Mandeb gateway, a critical chokepoint connecting the Red Sea to the Gulf of Aden. No specific timeframe for implementation has been announced.
Sources suggest the objective behind these potential fees is to normalize charging for passage through international waterways and to increase pressure on the United States. Notably, Chinese ships would reportedly be exempt from these fees, a provision that emerged from direct talks between China and the Houthis aimed at ensuring safe passage for Chinese oil tankers. China is the world's largest buyer of Saudi Arabian oil.
Houthi officials reportedly discussed imposing fees on Bab el-Mandeb transits with Iranian counterparts during a visit to Iran in July. An Arab official in the region stated that Iranian advisers are assisting the Houthis in establishing a potential authority to regulate these fees. "The Houthis will try to gain access over the Red Sea and they will try to charge ships if they do," Afrah al-Zouba, foreign minister-designate with Yemen's internationally recognized government, told Reuters.
This development occurs amidst rising oil prices, which climbed 5 percent following renewed fighting in the Middle East. The U.S. military announced that it conducted precision strikes with Saudi Arabia's armed forces in Iraq on July 28 against Iran-aligned militant groups directed by the Islamic Revolutionary Guard Corps (IRGC) to attack U.S. forces and Saudi energy infrastructure. Iraq's paramilitary Popular Mobilisation Forces reported at least 20 soldiers killed in these strikes.
The potential Red Sea toll could face strong opposition from Gulf and European nations. However, international naval forces are currently stretched thin, and there is limited political will to enhance protection for merchant shipping. The Houthis' maritime campaign, which began in November 2023 in solidarity with Palestinians in Gaza, has disrupted Red Sea traffic. The group's attacks on merchant ships ceased with the Gaza ceasefire in October. A Saudi tanker was reportedly attacked off the southern Saudi port of Jizan last week, with the Houthis claiming responsibility.
A United Nations Panel of Experts report from 2024 alleged that the Houthis had previously collected fees from some shipping agencies transiting the Red Sea and Gulf of Aden for safe passage during their 2024 maritime campaign, though the report stated it was unable to independently verify this information. Estimated fees at that time were reportedly as high as $180 million per month, though these figures were also unverified.
Closure of the Bab el-Mandeb would significantly impact Saudi Arabia, removing a critical alternative route to the Strait of Hormuz and intensifying concerns about oil supply shortages. Sailing through the Bab el-Mandeb to Asia typically takes about 16 days, compared to an average of 50 days if rerouted around southern Africa.