Houthis Weigh Red Sea Transit Fees As Maritime Tensions Escalate: Reports

Yemen's Iran-aligned Houthis are considering imposing fees on commercial ships transiting the Red Sea, according to sources familiar with the matter, as the group escalates its campaign against maritime traffic following its declaration of a naval blockade against Saudi Arabia.

The Houthis have been considering a system of fees similar to what Iran has proposed in the Strait of Hormuz, the sources said to Reuters. The group has not yet announced any formal fee structure, but the consideration reflects its growing willingness to use its position overlooking the Bab el-Mandeb Strait to extract economic concessions from commercial shipping.

The move comes after the Houthis announced a naval blockade against Saudi Arabia and claimed attacks on two Saudi oil tankers in the Red Sea. The group said the blockade was in response to what it described as Saudi actions against Yemen and was aimed at blocking Saudi exports.

While commercial vessels continue to transit the Bab el-Mandeb, traffic has fallen significantly, with shipping data showing the lowest daily figures in several months.

Iran's Military Support To Houthis

The move also comes amid reports of increased Iranian military support to the Houthis. Iran flew Islamic Revolutionary Guard Corps (IRGC) commanders, military advisers, and missile- and drone-related equipment into Yemen aboard a July 13 flight from Tehran, according to sources cited by Reuters.

Between 10 and 21 IRGC personnel, including senior commanders, were on board the aircraft, two Iranian sources said. "The IRGC commanders travelled there to support Houthi operations and provide training on new missile systems," one of the sources said, adding that Iran also sent gold on the aircraft to fund Houthi activities.

The deployment offers fresh evidence of Iran's backing of the Houthis, who have been fighting the Saudi-backed, internationally recognised Yemeni government in a civil war for more than a decade and have carried out missile and drone attacks against Gulf neighbours.

The Houthis have previously denied acting as an Iranian proxy and have said they develop their own weapons. Tehran has repeatedly denied providing the Houthi movement in Yemen with missile capabilities.

Red Sea Tensions And Global Shipping

The Bab el-Mandeb Strait is a narrow chokepoint connecting the Red Sea with the Gulf of Aden, through which a significant portion of global oil and gas shipments pass. Petroleum volumes passing through the Bab el-Mandeb reached about 7.4 million barrels per day in June, equivalent to roughly seven per cent of global oil production.

The latest Houthi campaign comes as Gulf exporters have increasingly relied on the Red Sea because shipping through the Strait of Hormuz has also faced disruption during the wider regional conflict.

The Houthis have demonstrated their ability to disrupt Red Sea shipping before. Following the outbreak of the Gaza war in late 2023, the group launched attacks on vessels it said were linked to Israel, prompting major shipping companies to divert ships around the Cape of Good Hope instead of using the Suez Canal. Traffic through the Suez Canal has still not recovered to pre-2023 levels.

Whether the Houthis can sustain their latest campaign remains unclear. For now, the evidence suggests the Houthis have not blocked the Red Sea to marine traffic, but by making one of the world's busiest shipping corridors riskier to use, they have already influenced commercial decisions, disrupted trade flows and added fresh uncertainty to global energy markets.